According to Galaxy Digital CEO Michael Novogratz, crypto such as Bitcoin has recovered because institutions are showing great interest in them.
He was asked about the recent Bitcoin price activity and what seems to be pushing the cryptocurrency's price back to the $40,000 mark. The pro-bitcoin executive responded, saying:
“Because institutions are purchasing, cryptocurrency has recovered.”
As an example, he mentioned the FTX exchange. The exchange just secured $900 million in funding from more than 60 investors, valuing the firm at $18 billion.
Softbank Group Corp., Sequoia Capital, private equity behemoth Thoma Bravo, Daniel Loeb's Third Point, the Paul Tudor Jones family, and British hedge fund manager Alan Howard were among the investors.
He rejected the notion that the price increase was caused by reports that Amazon may accept bitcoin payments.
He emphasized that institutions are some of the world's best investors, and they are investing in the crypto sector, saying:
“That signaled to the whole crypto market that this isn't going away.”
“This was partially a massive short-covering rally, but it was also an awareness that this is a legitimate market that isn't going away,” said Galaxy Digital CEO.
Mike Novogratz was also questioned about the cryptocurrency regulation. Also, what it might look like in the United States, particularly in light of Senator Elizabeth Warren's warnings.
Moreover, Warren's caution about the volatility of Bitcoin's price puts ordinary investors and companies who take Bitcoin at risk. Furthermore, she said that those who utilize Bitcoin as a form of payment are criminals.
“It was a letdown. She was arrogant. She was smug. She was quite dissatisfied since she had not completed any job. This is cutting-edge technology. She's supposed to be a liberal.”
“Crypto is on the hunt for rent takers. Consider DeFi [decentralized finance]. Consider the NFT [non-fungible token] revolution. It will give artists and creators more control over the individuals who used to make money off their backs. So, extremely upsetting and disappointing,” he added.
It just informs us... We need to do a lot better job of traveling to Washington, D.C. and educating [politicians].
“Banks charged $12 billion in overdraft fees, tens of millions in ATM fees, and tens of millions in checking account costs.
However, you continue to pursue crypto, where saving and money transfer are a fraction of what banks provide. Senator Warren, you did an excellent job. “You don't appear to be very progressive to me,” Novogratz tweeted, adding:
We would not have had the mortgage crisis if banks had the openness of DeFi processes. DeFi will prevail because it is superior.
“Atomic settling. Bearer assets are assets that are held by the bearer. Composability. Transparency. All that remains is to prepare for the impending KYC. “We must educate our politicians,” he said.