Mike Novogratz appeared on Bloomberg TV to share his views on the $80 billion rally of DOGE, the meme cryptocurrency. The interview was followed by the latest purchase of crypto custodian BitGo on Wednesday.
Galaxy Digital Founder Answered – What’s Driving DOGE Prices?
Novogratz mentioned the statements of Elon Musk and Mark Cuban, according to whom there is far more to the meme-coin surge than just those two influencers. He believes that Dogecoin is very dangerous in terms of Volatility as the prices can go up and down very easily.
According to Mike Novogratz,
“The main driver for the Dogecoin rally is the retail funds of millennials and gen Z, who feel nihilistic about the current crisis in the global financial system and are seeking any suitable store of value.”
For this reason, Novogratz said,
“Equities are going up and real estate prices in some regions are surging, as are baseball cards and other collectibles (in which non-fungible tokens stand as a separate wave).”
Corruption associated with the fiat has also pushed the price of Bitcoin to the skies. According to the statistics, it has reached an all-time high of $64,863 on April 14, from October 2020. According to CoinMarketCap, DOGE is showing signs of surge as the price of Bitcoin increases.
Novogratz Warns The Volatile nature of DOGE
A word of warning came from Novo that provoke the fact that,
“Triggers that are making equities go up are also pushing cryptocurrencies to the North.”
He pointed out,
“Although DOGE is going up, along with BCH, ETC, and LINK, the crypto industry is not a bubble.” He expects that the prices of these coins can go up and down with a small influence.
The major reason behind this volatile behavior of Dogecoin is the lack of development that is going on in the crypto ecosystem. The absence of institutional money into the crypto made Novogratz say “This is a retail frenzy.”