Galaxy Digital CEO: 'Over-excited' retail investors dominate crypto
Galaxy Digital CEO: 'Over-excited' retail investors dominate cryptoGalaxy Digital CEO: 'Over-excited' retail investors dominate cryptoBitcoinBitcoin

Bitcoin is the technology of the future, despite its price plunge. That’s what billionaire bitcoin proponent Mike Novogratz told Bloomberg. Retail investors have all the reasons to get into the crypto market.

Big price swings are back

The cryptocurrency market is once again seeing price swings after the bitcoin price crashed on Tuesday. At that point, the crypto flagship became legal tender in El Salvador. These developments were not unexpected by many financial experts, including the CEO of Galaxy Digital. In an interview with Bloomberg, the billionaire and Bitcoin supporter said:

Crypto is still dominated by retail investors. They are “too excited” by the recent interest from institutions like Visa and Amazon. People are realizing that cryptocurrencies aren’t just about Bitcoin. They are being bought as a hedge against bad monetary and fiscal policy. But perhaps more importantly, it’s Web 3.0. It’s the Internet of value transfer.

Retail investors have good reasons

For Novogratz, it’s understandable that these investors have relied on leverage for too long. He pointed to recent crypto news from retail and financial giants: Walmart is looking for a head of crypto products. Amazon is hiring crypto experts. Visa is buying NFTs and presenting them as promising assets. Novogratz added:

There’s a realization that this is an emerging technology and no investor wants to miss it. This is the internet of the future. Investors are too excited. Some air was let out of the balloon during Tuesday’s price drop.

Galaxy looks to complete BitGo acquisition

It’s exciting to see how the interests of different players are aligned. Galaxy Digital is planning to acquire BitGo: it’s the company that provides the infrastructure for El Salvador’s national bitcoin wallet, Chivo.

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This despite the fact that Chivo <a href=”https://cryptomonday.de/warum-el-salvador-den-bitcoin-absturz-ausloeste/” target=”_self” rel=”noopener”>got off to a bad start. There were technical issues like overloading the servers. But Novogratz is sure that these problems will be fixed with time. In his opinion, the real question is how the system will work in two to three months. Scaling such projects is not an easy task.

Price crash triggered by excessive trading

Novogratz’s opinion is supported by some analysts. They believe excessive trading triggered the crash. Bitcoin crashed to $43,000 yesterday, liquidating derivative markets worth more than $3.54 billion. Since then, the cryptocurrency has recovered somewhat. At the time of this article’s publication, Bitcoin is officially trading at $46,413.40.