Mike Novogratz stated institutional financiers are awaiting the next story shift in a current interview at the Bitcoin 2021 conference in Miami. The CEO of Galaxy Digital believes the marketplace is now in a debt consolidation stage after the price crash last month. Novogratz likewise discussed what the increase of defi might suggest for banking operators in the near future.
Mike Novogratz Believes Bitcoin Investors Are Awaiting a New Narrative
Galaxy Digital’s CEO Mike Novogratz believes Bitcoin is still in a phase of consolidation after the dump in prices experienced last month.
Institutional financiers were able to build up Bitcoin cheap at $9K rates, and with the abrupt price trek this year, they needed to take profits. Novogratz elaborates:
A year later on it’s at $60,000 and the desire to call the sales register is such an ingrained human desire that that’s what happened … We’ll see a long period of consolidation … and you’re waiting on the new narrative to show up that brings the next wave of money and I believe we’re in one of those periods right now.”
Novogratz thinks the new narrative shift is currently in the works. A Bitcoin or crypto ETF might bring this new members to the market. These instruments might press crypto to older Americans, that have actually been traditionally skeptical of cryptocurrency investments. Galaxy Digital, Novogratz’s company, filed an application for a Bitcoin ETF back in April.
Defi Will Affect Conventional Banking
Mike Novogratz also commented on the state of defi and how it will impact conventional banking in the near future. For him, the next five years will see the world shocked at the rise of defi. This indicates that banking services will suffer in contrast, due to the regulations they need to abide by. Defi protocols, on the other hand, are basically free to use whatever yield they desire according to their activities. Standard finance company will defend these to be regulated.
In any case, the entrepreneur thinks banks are fighting a losing fight. He worried:
Banks are going to lobby like insane– less versus bitcoin, more against Defi– but bitcoin is the trojan horse to get whatever in to digital assets and so transformations don’t take place without a little bloodshed.
What do you consider Mike Novogratz’s ideas on the marketplace? Tell us in the remarks section below.
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