Today, Galaxy Digital’s leader Mike Novogratz informed CNBC that Bitcoin is progressing towards supplanting gold and might eventually attain a valuation of $1,000,000.
“Bitcoin has transformed into a macro asset,” stated Novogratz. “Among the impressive aspects is that most individuals now have it displayed alongside gold, silver, and the S&P. Remember a decade ago when people considered us insane? Now, it’s recognized as an institutional macro asset… It’s becoming increasingly institutionalized.”
He underscored that Bitcoin is no longer merely a niche investment but an integral part of the mainstream financial sphere. He noted that its fluctuations are now perceived as standard when compared to conventional assets.
“We are in a dollar bear market. For the past 15 years, American exceptionalism has been the narrative. Europeans were substantially invested, and Asians were heavily weighted in US stocks, while we have a government that favors a weaker dollar. They are quite transparent about it,” he remarked. “Even in the manner Trump engages in negotiations. You can debate whether it’s effective or not, but by suggesting to Canada that they should aspire to be the 51st state, and implying that others should come here to appease him, it doesn’t encourage people to think, ‘Oh, I want to acquire more dollars.’”
Novogratz indicated that this worldwide transition is motivating investors towards assets outside of the dollar, including Bitcoin.
“I believe most macro funds are experiencing a fantastic year,” he mentioned. “They’re shorting the dollar, favoring the euro, the yen, and the Aussie, in addition to a variety of currencies. Well, Bitcoin, gold, silver, and platinum all belong to that same classification as assets not linked to the dollar.”
He also emphasized Bitcoin’s capped supply as a significant reason for its increasing value.
“There will be no additional Bitcoin,” he stated. “What distinguishes Bitcoin as an asset is that it was designed with 21 million coins in total. Period. End of discussion. There will never be more than that. However, not all of those coins have been mined—this is my point. A significant amount has been lost. More Bitcoins have been lost than will ever be mined for eternity.”
Novogratz is convinced that the influx of institutional engagement, including companies like BlackRock, is solidifying Bitcoin’s position as a savings asset.
“The bullish argument is that over time… gold gradually gets substituted by Bitcoin. If you compare gold’s market cap with Bitcoin’s market cap, Bitcoin still has a considerable journey ahead. Right? That’s a 10x difference. Therefore, that translates to $1,000,000 per Bitcoin, just to match gold’s value.”