Galaxy Digital CEO says BTC and ETH are best investments

Mike Novogratz is bullish on crypto, particularly the top two coins Bitcoin and Ethereum.
The Galaxy Digital CEO says BTC and ETH been best risk-adjusted investments over the last few years.
He also suggested during the company’s earnings call that the US risks losing its place as finanial and innovation leader.

Galaxy Digital CEO Mike Novogratz says crypto is in “a good moment” highlighting the fact that Bitcoin and Ethereum have been the best risk-adjusted investments in the world over the past few years.

The billionaire investor said this while commenting on the crypto market outlook during Galaxy Digital’s earnings call. He said:

“I look right now and say, “What’s the good?” Bitcoin is trading over $27,000, Ethereum over $1,700. On a risk-adjusted basis, that’s volatility adjusted, Sharpe ratio adjusted, Bitcoin and Ethereum have been the two best-performing assets in the world this year. They’ve been the two best-performing assets in the world over the last two years. So, whatever Jamie Dimon wants to say, whatever the Biden administration wants to say, they’re just wrong, and the world knows that.”

Steve it has outperformed all assets ytd, over 2 years and 3 years on a risk adjusted weighting (sharpe ratio) It’s been safer than JPM and Google. Run the numbers yourself. https://t.co/uA15XaoUTo

— Mike Novogratz (@novogratz) March 28, 2023

Novogratz explains what’s driving crypto

Bitcoin has tested resistance near $29,000 in 2023, with its current price of $28,650 about 84% higher year-to-date. Ethereum has also traded above $1,800 as investors eye the $2,000 level. According to latest market data, the price of Ethereum is about 61% higher YTD.

In Novogratz’ opinion, recent price action has the top coins poised for greater gains over the next several months. As highlighted in the earnings call transcript, the Galaxy Digital CEO believes all “the selling that needed done as crypto prices fell was done.

Retail has also been behind much of the recent price appreciation, the billionaire investor added.

“What’s promising, and what has driven crypto broadly this year, is two things. One, all the selling that needed to get done got done, right? There was so much bad news, if you had to sell, panic selling and just the nervousness of “Oh my God! This thing could go to zero,” and people were in sheer panic, you had seller’s exhaustion. But, you’ve had Asia reopen. China has—you know, post the Xi protests around COVID Zero, China took the regulatory boot of the necks of their tech companies, and that includes crypto, so you’re seeing, with Chinese traveling, you’re seeing more activity from Asia.”

Bitcoin could be “substantially” higher in a few months

Novogratz also believes the current wave of adoption across the Middle-East, Hong Kong and Europe is good for the crypto industry, even as the US risks losing its place as a financial market leader. 

According to him, the Biden administration’s attack on crypto, as evidenced by the series of enforcement actions and charges among other things, is shortsighted.

As for his outlook for Bitcoin and the broader crypto market, the Galaxy Digital chief noted:

“The market feels strong, and when I look at it technically on charts, we’ve had big weekly closes. I’m surprised to hear myself say this, given where my mindset was in late December, but it would not surprise if we were substantially higher three months, six months, nine months from now.”