Galaxy Digital’s founder and CEO, Mike Novogratz, has projected that Bitcoin could reach a valuation of $1 million, given its continued adoption rate. This prediction suggests a tenfold increase in the cryptocurrency’s value.
While speaking to CNBC, Novogratz emphasized that the growing interest in Bitcoin, particularly among younger generations, could eventually see it replace gold. “If you look at gold’s market cap and Bitcoin’s market cap, Bitcoin has a long way to go, 10x, and so that’s [$1 million] Bitcoin just to be where gold is,” he commented.
Novogratz joins other Bitcoin enthusiasts, like Ark Invest’s Cathie Wood and Strategy’s Michael Saylor, who have previously suggested significant long-term appreciation for the cryptocurrency. In April, Ark Invest adjusted its bullish Bitcoin price projection to $2.4 million by 2030, an increase from an earlier prediction of $1.5 million.
Underpinning Novogratz’s prediction is the current trend of macro adoption. More companies are investing in Bitcoin and easier access to the currency has led to increased retail investor activity. The adoption of Bitcoin as a macro asset, he believes, is a trend that will only continue to gain momentum.
BlackRock, the Wall Street behemoth, exemplifies the institutional adoption of Bitcoin as a macro asset. Its growing ETF has acquired a significant amount of the cryptocurrency for its clients, representing about 3% of Bitcoin’s total supply as of April. The exchange-traded fund currently manages over $70 billion in assets.
Bitcoin’s current trading value stands around $106,210.56, just short of its all-time high of over $111,000. Over the past year, Bitcoin’s price has risen over 50%.
Novogratz’s Galaxy Asset Management raised $113 million last year for Galaxy Ventures, a fund that invests in early-stage crypto-based companies. The firm also runs a large mining facility in Texas and holds an estimated 12,830 BTC, worth over $1 billion. Bitcoin’s market cap currently exceeds $2 trillion.
Disclaimer: This article is provided for informational purposes only and does not constitute investment, financial, or other advice. As of November 2023, The Block is a majority investor in Foresight Ventures, which has investments in other crypto companies.
