Galaxy Digital CEO Michael Novogratz said cryptocurrencies, such as bitcoin, have rebounded because institutional investors buy. Responding to US Senator Elizabeth Warren’s anti-crypto stance, he said, “We have to do a much better job going to DC” to educate lawmakers.
Novogratz says that institutions buy
Galaxy Digital CEO Mike Novogratz spoke about the prospects for bitcoin in an interview with CNBC on Wednesday.
He was asked how he sees the evolution of bitcoin prices and what he thinks has brought the price of the cryptocurrency down to the $ 40,000 level. The pro-bitcoin executive responded:
Crypto has rebounded because institutions buy.
He brought up the FTX exchange as an example. The exchange recently raised $ 900 million from more than 60 investors, bringing the company’s valuation to $ 18 billion. Investors included Softbank Group Corp., venture capital firm Sequoia Capital, private equity giant Thoma Bravo, Daniel Loeb’s Third Point, the Paul Tudor Jones family and UK hedge fund manager Alan Howard.
Novogratz rejected the explanation that the price increase was due to the announcement that Amazon could accept cryptocurrency payments.
Emphasizing that institutions are among the smartest investors in the world and participating in the crypto space, he said:
This sent a signal to the entire crypto market that it is not going to go away.
“It was partly a great rally of short duration and partly a recognition that this is a real market that is not going anywhere,” said the CEO of Galaxy Digital.
Novogratz was also asked about the regulation of cryptocurrency and what it could potentially look like in the United States, particularly after the warnings from Senator Elizabeth Warren.
Warren warned on Tuesday that fluctuations in bitcoin prices put retail investors and businesses that accept bitcoin payments at risk. In addition, she claimed that people who use bitcoin for money are criminals.
Regarding Senator Warren’s remarks on cryptocurrencies, the CEO of Galaxy Digital said:
It was disappointing. She was contemptuous. She was blissful. Really disappointed that she didn’t do any work. It is an evolutionary technology. She’s supposed to be a progressive.
“Crypto is going after rent takers. If you look defi [decentralized finance]. If you watch the NFT [non-fungible token] revolution. This is going to give more power to artists and creators over the people who were making money off their backs. So really frustrating and disappointing, ”he continued, adding:
That just tells us… We have to do a much better job going to DC and educating [lawmakers].
Novogratz also responded to Warren’s anti-cryptocurrency stance on Twitter on Tuesday.
“The banks charged $ 12 billion in overdraft fees, a fortune in ATM fees, a fortune in checking account fees. But you continue after crypto where saving and transferring money is a fraction of the banks. Good job Senator Warren. You really don’t seem that progressive to me, ”he tweeted, adding:
If the banks had had the transparency of the challenge protocols, we would not have had the mortgage crisis. Defi will win because it’s better.
“Atomic regulation. Bearer assets. Composability. Transparency. We just need to sort out the KYC that’s coming up. We need to educate our politicians, ”he concluded.
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