Bitcoin has taken investors on a roller coaster ride lately. As an emerging asset class, cryptocurrencies are inherently volatile. Nevertheless, bitcoin price has been stuck in a downturn and the recent rally above USD 40K has been a psychological boost for investors. That bull run seemed to be short-lived after that Amazon denied reports that it was about to support bitcoin, but now it looks like the rally may have legs.
Bitcoin price is again above $40K even without Amazon’s help. And most of the top 10 cryptocurrencies also trade in the green.
While the signs suggested Amazon was the reason for the recent market swings, Galaxy Digital founder Mike Novogratz suggests there is another catalyst for today’s earnings: institutions. He told CNBC:
“Crypto has recovered as institutions are buying… This was part a big short-cover rally and part recognition that this is a real market going nowhere.”
Crypto is here to stay
Novogratz, a former hedge fund trader on Wall Street, pointed to FTX, a cryptocurrency exchange startup that just took $900 million into its coffers in a Series B round. He also noted the caliber of the investors in the round, including the likes of SoftBank and Paul Tudor Jones, who said it sent a message to the market that cryptocurrencies are here to stay.
Novogratz clap back
Cryptocurrencies may be here to stay, but certain lawmakers are doing everything they can to make investing more difficult. US Senator Elizabeth Warren is behind a letter to Treasury Secretary Janet Yellen who urged the former Fed chair to crack down on the cryptocurrency industry. Senator Warren portrayed retail investors as victims amid crypto market volatility that could lead to financial losses.
Novogratz has none of it. He went on a tweet storm relying on legacy funding for things like overdrafts while defending the cryptocurrency industry and its participants. Novogratz was “riled up” by Senator Warren, who says she doesn’t seem “so progressive” to him.
The Galaxy chief didn’t hold back, suggesting that if banks had the same standards as DeFi when it comes to transparency, the 2008 era mortgage crisis would never have happened. Novogratz added that KYC (know-your-customer) standards are coming to crypto. He would also like to see politicians better educated in the market.
This one article was originally posted on FX Empire