Mike Novogratz – CEO of Galaxy Investment Partners – recently gave his thoughts on Bitcoin’s price volatility going forwards. Here’s what he had to say.
On CNBC’s Squawk Box, Joe Kernen pointed out to Novogratz that Bitcoin is up 66% on the year, yet down 30% from its high of $69k. He then asked if institutional adoption would lessen this apparent volatility.
“I think volatility is coming down,” responded Novogratz. He recognizes how Bitcoin is relatively stable compared to altcoins.
The CEO also mentions that the short-term speculative investors formerly involved with Bitcoin may be moving to other coins with potentially larger upside. Indeed, a CryptoPotato analysis finds that Shiba Inu has absorbed much attention from retail buyers, possibly affecting Bitcoin’s price volatility.
Though Bitcoin may grow more stable, Novogratz does not believe it will become a transactional currency.
“I think it is tailor-made to be a store of value,” he said. Though he acknowledges innovations like the lightning network facilitating faster transactions, he maintains that Bitcoin will be digital gold, reiterating his opinion from July.
Bitcoin’s reputation as a gold-like inflation hedge is growing fast. Bloomberg recently said its deflationary forces would help it reach $100k next year.