Mike Novogratz, the CEO of Galaxy Investment Partners, has expressed his belief that traditional financial players are increasingly showing interest in the blockchain.
Massive volatility seen in 2022
In a recent report by Bloomberg, Novogratz stated that institutional investors are once again investing in the crypto markets, following the significant volatility experienced last year.
Recently, institutions have made a comeback in futures and some stocks. This is significant because they are also returning in structural ways.
A good example of this is PayPal, a traditional financial giant, which has created a stablecoin called PayPalUSD (PYUSD). The aim of PYUSD is to maintain a 1:1 peg with the US dollar.
According to Novogratz, this new stablecoin project by PayPal could potentially become a security that offers interest. This could lead to destabilization of banks.
Novogratz is also confident in the stability of the leading stablecoin by market cap Tether (USDT).
“[There isn’t] any significant risk or any real risk of a big run on Tether, which sometimes just scares the market.”
Galaxy, an investment firm led by Novogratz, specializes in cryptocurrency and blockchain technology investments. Novogratz is a strong supporter of cryptocurrency and has been referred to as a “Bitcoin Bull.”
He firmly believes that cryptocurrency is the way forward for currency and has the capability to transform the financial industry.
New BTC outlook is here
A respected trader who predicted the rise of cryptocurrency earlier this year has stated that Bitcoin’s trend has shifted in favor of the bears.
DonAlt, a well-known crypto analyst with over 500,700 followers, believes that the loss of $30,000 as support means that Bitcoin has entered a bearish territory. He suggests that Bitcoin is already in a consistent downward trend.
“The move down has been slow but very consistent, some might call this chop, but I’d call it a downtrend.
(above) $30,000 = good.
$20,000 = good.
$27,000 = might be good enough for a punt.”
