The CEO of Galaxy Digital, Michael Novogratz, anticipates that the surging institutional interest in Ethereum could instigate a supply squeeze, potentially positioning Ethereum to outpace Bitcoin within the next six months. “The scarcity of ETH supply suggests that Ethereum has a fair shot of surpassing Bitcoin performance in the approaching three to six months,” stated Novogratz during his CNBC interview.
Novogratz predicts that Ethereum is “predestined to at least touch” $4,000. He elaborated, “If ETH breaks through $4,000, it enters price discovery territory,” indicating an approximately 8.5% leap from Ethereum’s (ETH) present price of $3,618 based on Nansen data. He added, “We anticipate that the $4,000 mark will be tested multiple times.”
Novogratz highlighted Ethereum’s “compelling” narrative, citing significant Ethereum purchases by prominent firms Sharplink Gaming and BitMine Immersion Technologies. BitMine recently reported an Ethereum holding of 566,776 ETH (around $2.03 billion), while Sharplink owns 360,807 ETH (about $1.29 billion).
Yet another company, Ether Machine, aims to list on Nasdaq under the ticker “ETHM”, managing more than $1.5 billion worth of over 400,000 ETH at debut. Novogratz doesn’t foresee this accumulation slowing down. “They are securing capital daily to purchase Ethereum,” he stated. Another expert, BitMEX co-founder Arthur Hayes, earlier this week projected that Ethereum could reach $10,000 by the year’s end.
Technical analysis indicates Ethereum is already starting to outperform Bitcoin. The ETH/BTC ratio from TradingView reflects Ethereum’s relative strength against Bitcoin, which has increased by 36.53% in the past month.
Novogratz, however, still predicts short-term growth for Bitcoin. He suggested a Bitcoin price of $150,000 is a “reasonable target based on my chart analysis.” He added, “We seem destined for higher grounds as long as the current narrative persists.”
Bitfinex analysts reported on Wednesday that if Bitcoin maintains its bullish trend, the next major goal could be $136,000, but it could indicate a local peak. They said, “Historically, this level suggests extreme bullish conditions, often aligning with market euphoria and peak positioning.”
Novogratz cautioned that a policy change by US President Donald Trump towards higher interest rates could upset his prediction. “Such a shift could alter my thesis, but until then, I believe we’re on course for 150,” he concluded.
Note: This article does not provide investment advice or recommendations. All investments and trading actions involve risk. Readers should conduct their own due diligence before making any decision.
