Michael Novogratz breaks down bitcoin and what’s driving up the price and his outlook on volatility
Novogratz advises stocking up on gold rather than bitcoin
Bitcoin market is going through hard times due to increased volatility.
Novogratz advises to temporarily focus on precious metals.
Gold, meanwhile, nearly reached a 9-year high..
The head of the digital bank Galaxy Digital advises storing more gold in the investment portfolio than bitcoin due to the high volatility of the virtual asset.
Mike Novogratz, a well-known bitcoin supporter and CEO of digital bank Galaxy Digital Holdings, in an interview with CNBC Fast Money, urged to stock up on gold rather than bitcoin due to the high volatility of the cryptocurrency asset.
The head of Galaxy Digital still would not advise buying bitcoin in the current environment compared to gold due to the high volatility of the cryptocurrency..
“It seems to me that bitcoin is superior to [gold], but I would advise people to have a lot less bitcoins than gold, precisely because of the volatility,” Novogratz said..
Novogratz stressed that the largest cryptocurrency by market capitalization is still difficult to acquire, which hinders the growth in price.
However, on the market new cryptocurrencies opportunities that make it easier for investors to access a virtual asset.
“More and more people are working to make a purchase. Funds appear, custodians are created.
At some point, we will receive [bitcoin] ETFs, ”added Novogratz.
In April of this year, Novogratz noted that the comparison of bitcoin with gold is not entirely correct, since the precious metal has “its own history”, and for bitcoin a “new period” will soon begin.
Novogratz, however, noted that Bitcoin will outperform gold in economic terms, at least due to the fact that the virtual asset is still in its early stages..
In spite of everything
However, the volatility of bitcoin does not put an end to Novogratz’s plans to develop a business in an unstable industry..
Bank Novogratz has suffered multimillion-dollar losses for several quarters in a row, but still continues to provide services to customers and enter into new partnerships.
The BeInCrypto editors previously reported that the crypto bank of the popular cryptocurrency lobbyist has already entered into cooperation with the Bakkt crypto platform to develop a joint platform aimed at institutional investors..
[perfect_survey id = ”8615 ″]
Gold, meanwhile, is just a few percent of its all-time high in August 2011, when the ounce hit $ 1917.90.
On moment of writing, Bitcoin price BTC / USD is $ 9341.