Mike Novogratz, the founder and CEO of Galaxy Digital crypto bank, recently discussed the causes for the current rise in Bitcoin and Ethereum prices on the Squawk Box show.
He expects that bitcoin will restart its upward trend in the fourth quarter of 2021.
Factors that have propelled cryptocurrency prices higher, according to Novogratz
The former Goldman Sachs asset manager, who initially purchased Bitcoin in 2013-2014 and bought 500,000 ETH from Vitalik Buterin in 2015 when it was still $0.99, feels that the crypto rise has resumed as a result of Walmart and Amazon’s recent interest in the field.
He reminded the Squawk Box co-host that these two retail behemoths recently advertised employment openings for crypto engineers and crypto asset department heads.
Novogratz interpreted this as a clear statement from Amazon and Walmart that they are committed to participating in this new trend.
Furthermore, on Tuesday, Visa, the world’s largest payments card company, purchased a CryptoPunk NFT (non-fungible token) for $150,000 in Ethereum, as if to signal that digital assets will be a significant part of their business.
Novogratz went on to say that he spoke with the “person who heads crypto at Visa,” who corroborated his assessment of the change.
According to Galaxy Digital CEO, a lot of the financial system will be rebuilt on a blockchain basis.
Washington became aware of the crypto business as a result of community pressure.
Novogratz also brought up the $3.5 trillion infrastructure bill, a portion of which was intended to be funded through cryptocurrency taxes. Several US senators have proposed an amendment that would make things very difficult for the crypto business.
The crypto community, however, erupted over the weekend of August 6-7, calling, emailing, and writing senators and congressmen to explain why this amendment would stifle fintech innovation in the United States, and it was defeated.
Mike Novogratz claimed that Washington saw cryptocurrency as a legitimate sector for only one weekend.
Cryptocurrencies and the S&P 500 may have a strong fourth quarter.
In terms of what may happen to Bitcoin and Ethereum in the future, Novo believes that crypto cannot continue to rise indefinitely and will eventually stabilize and consolidate. However, according to Novogratz, Bitcoin and other crypto assets are likely to restart their climb in the fourth quarter.
He thinks the S&P 500 index, as well as crypto, will have a successful fourth quarter.