Regulation
Bullish Galaxy Novogratz on Bitcoin: $100,000 possible in 2024
Michael Novogratz, billionaire founder and CEO of Galaxy Digital, predicts that a more favorable political environment for digital assets in the United States could drive Bitcoin to unprecedented highs, possibly reaching or exceeding $100,000 by the end of the year.
Current Bitcoin Market Performance
Novogratz expressed optimism during an interview on Bloomberg Television, stating that if Bitcoin reaches $73,000 in the coming weeks, it could end the year at $100,000 or more, considering it an achievable goal. Bitcoin hit an all-time high of $73,798 in March, but has since struggled to regain that level. On Tuesday, Bitcoin rose 2.8% to $71,005, marking the highest value in about two weeks.
In recent weeks, sentiment has shifted more positively towards cryptocurrencies. Novogratz noted that the U.S. Securities and Exchange Commission (SEC) has moved closer to approving exchange-traded funds investing directly in Ether. Additionally, political donations supporting pro-crypto candidates have increased, with even presidential candidates vying for pro-crypto positions.
The billionaire emphasized that the political environment is now geared towards a positive outlook for cryptocurrency. He mentioned that Washington, D.C., agreed in principle that crypto legislation should be bipartisan, signaling that progress towards regulatory clarity.
President Biden’s veto and its impact
However, President Joe Biden vetoed a resolution that had passed both the House and Senate and was widely supported by the cryptocurrency industry. This resolution sought to repeal the SEC’s Staff Accounting Bulletin 121, which requires financial institutions holding cryptocurrencies to maintain the digital assets on their own balance sheets. Biden described the effort to repeal the SEC decision as a “Republican-led resolution,” although it has garnered bipartisan support.
Biden argued that repealing the SEC’s ruling would limit the SEC’s ability to establish appropriate safeguards and resolve future issues, potentially undermining the SEC’s broader authority over various accounting practices.
He stressed that his administration would not support measures that jeopardize the well-being of consumers and investors, advocating for appropriate safeguards to harness the potential benefits and opportunities of crypto-asset innovation. The veto sparked significant backlash from crypto supporters online.
Despite the veto, the Biden administration has shown a change in tone in its outreach to the crypto industry. Reports indicate that crypto-focused super PACs plan to invest millions in U.S. Senate elections in Ohio and Michigan, underscoring the crypto community’s broader political strategy.
Innovative crypto loans with a historical touch
In a related development, Novogratz, along with Yat Siu, co-founder of Animoca Brands, tokenized a 1708 Stradivarius violin to use as collateral for a multimillion-dollar loan. On June 4, Galaxy allegedly loaned an undisclosed amount to Siu, who used the 316-year-old violin as collateral. The violin was converted into a non-fungible token (NFT), with Galaxy holding both the NFT and the physical instrument until the loan was repaid.
Although the exact amount of the loan has not been disclosed, it has been confirmed to be in the millions. A Hong Kong-based guard will hold the violin until an agreement between Siu and Galaxy allows for its release. The violin, once owned by Russian Empress Catherine the Great, has documented provenance dating back more than 300 years, as confirmed by Tarisio, a musical instrument auction house.
Thomas Cowan, vice president of tokenization at Galaxy, noted that tokenizing physical assets could revolutionize crypto lending. Typically, collateral related to crypto assets is very high due to the volatility of digital assets. Tokenization of valuable physical assets such as the Stradivarius violin can provide more stable and secure collateral options for crypto lending. As regulatory frameworks and market sentiments continue to develop, Bitcoin and other cryptocurrencies could see significant milestones in the near future.