Galaxy Digital CEO Michael Novogratz on crypto rally: Still see bitcoin ending the year a lot higher

Galaxy Digital CEO Michael Novogratz joins ‘Squawk Box’ to discuss the latest crypto rally following the spot bitcoin ETF decision, state of bitcoin at large, the impact of Fed’s rate decision on bitcoin price levels, 2024 election, and more.

WALGREENS IS OUT, AMAZON GOING IN GOING TO HAPPEN ON MONDAY. >> OKAY. MEANTIME CHECK OUT THE PRICE OF BITCOIN. JUST ABOUT TO CROSS THE 53,000 DOLLAR LEVEL NOW TRADING LOWER TODAY AT $51,318 ALSO ETHEREUM CROSSED OVER THE $3,000 LEVEL GIVING BACK SOME GAINS. ALL OF THIS AMONTH AFTER THE

S.E.C.’S SPOT BITCOIN ETF DECISION JOINING US NOW, AN EXCLUSIVE INTERVIEW, GALAXY CEO MIKE NOVOGRATZ. MIKE, GREAT TO SEE YOU TALK WHETHER CONSOLIDATION AT THAT $52 LEVEL ALSO JUST ABOUT, WHAT’S ABOUT TO HAPPEN NOW BETWEEN HAVING AND EVERYTHING ELSE AND WHAT KIND OF INTEREST WE’RE REALLY SEEING FROM THE INSTITUTIONAL SPACE

GIVEN WHERE YOU SIT AND ACTUALLY THE INSTITUTIONS THAT YOU’RE TALKING TO, WHERE ARE WE IN THAT PROCESS? >> LISTEN, WE HAVE COME A LONG WAY FAST, BUT IN U.S. STOCKS AND IN CRYPTO. CRYPTO, ALMOST FELT TOO EASY RIGHT? YOU KNOW, WE’VE GONE UP ALMOST EVERY DAY. SO WHAT SURPRISED ME, IT

WOULDN’T SURPRISED PHOO THERE’S SOME CONSOLIDATION TREES DON’T GROW TO THE SKIES, BUT I THINK THE BIG STORY IS WE’VE NOW OPENED UP THE INSTITUTIONAL — REALLY, THE RAI COMMUNITY. RIGHT? $42 TRILLION WORTH OF WEALTH ARE MANAGED BY BROKERS BABY BOOMERS OWN MOST OF THE WEALTH IN AMERICA AND GETTING

THEIR FIRST EASY ACCESS TO BITCOIN AND YOU’RE SEEING IT THROUGH ETFs, MASSIVE GROWTH IN A VERY SHORT PERIOD OF TIME IN THIS WHOLE ETF COMPLEX. I DON’T THINK THAT’S GOING TO STOP RIGHT? LAST NIGHT WE HAD $135 MILLION OF BIT FLOWS AFTER SLOWING DOWN FROM 400, 4350

TAUGHT EARLY IN MY CAREER PRICES GET SET ON THE MARGIN. RIGHT? GOT MORE BUYERS AND SELLERS, PRICES GO UP I SEE IT, KIND OF A — THESE ARE HOT ALERTS AS WELL GUYS PUTTING IN THEIR PORTFOLIO TO HOLD. NOT TRADERS. THE ETF BUYERS IN GENERAL COMING THROUGH THESE RAI CHANNELS I

THINK ARE TAKING SUPPLY OFF THE MARKET I STILL SEE BITCOIN ENDING THE YEAR A LOT HIGHER. THAT SAID, CONSOLIDATE AROUND HERE FOR A WHILE OF COURSE WE HAVE. >> TALK THROUGH THIS SORT OF DYNAMICS OF HIS RAI SITUATION. WHICH IS A NUMBER OF INSTITUTIONS STILL NEED APPROVE TOLL DO THIS

HOW DO YOU SEE THAT PLAYING OUT IN TERMS OF JUST, YOU KNOW — HOW MANY ADVISERS CAN ACTUALLY RECOMMEND BITCOIN HAS A PRODUCT TODAY VERSUS HOW MANY WILL BE ABLE TO DO THAT IN SIX MONTHS FROM NOW >> I DON’T HAVE A PERFECT ANSWER

BUT WOULD TELL YOU AT LEAST DOUBLE IN SIX MONTHS RIGHT? THERE ARE BIG CHANNELS THAT STILL AREN’T TURNED ON WE KNOW THEY’RE GETTING TURNED ON RIGHT? WE’RE IN CONVERSATIONS WITH THEM THE BIG PLATFORMS, AND, LIKE, THERE’S AN INEVITABILITY TO IT WHY? BECAUSE THEIR CUSTOMER, CALLING

AND PIBITCHING AT THEM SAYING WE WANT TO BUY BITCOIN WITH YOU AND OTHERS ARE SCREAMING AT THEIR BOSSES I’M CERTAIN IT’S GOING TO HAPPEN NOT IT MIGHT HAPPEN. IT IS GOING TO HAPPEN. IT TAKES TIME. THESE ORGANIZATIONS ARE VERY CONSERVATIVE IN GENERAL, AND CRYPTO SCARED THE HECK OUT OF

PEOPLE 18 MONTHS AGO SO THERE’S STILL SCAR TISSUE IT’S SURPRISING THAT WE HAVE A — A, YOU KNOW, APPROVED, YOU KNOW, U.S. SANCTIONED BITCOIN ETF AND IT’S STILL VERY DIFFICULT FOR A LOT OF CRYPTO COMPANIES JUST TO GET BANKING SERVICES IN THE U.S.

>> SO SO MANY OF THESE FOLKS ARE HOLDERS YOU LIKE TO CALL THEM. ED INDUSTRY LIKES TO CALL THEM WHEN DO YOU THINK WE GET TO A POINT PEOPLE ARE ACTUALLY BUYING AND SELLING THIS PRODUCT >> LISTEN, THERE IS A TRADING COMMUNITY. RIGHT? LIKE, WHAT PEOPLE FORGET IS, IF

YOU’RE YOUNG IT’S NOT DIFFICULT TO BUY BITCOIN GHT? GET IT ON YOUR SQUARE APP, ON ALMOST ANY APP ROBINHOOD. THERE’S A WHOLE UNIVERSE OF PEOPLE THAT HAVE BOUGHT AND SOLD THAT WILL CONTINUE TO. HEDGE FUNDS BROADLY. THEY DON’T BUY ITSELF DAILY, UNLESS THEY’RE QUANT FUNDS

MACRO GETS IN, GETS OUT LIKE ANY OTHER ASSET. THINK ABOUT EVERY MACRO TRADE IS BULLISH GOLD BET YOU EVERY MACRO TRADER YOU CAN TALK TO HAS BOUGHT AND SOLD GOLD FOUR TIMES IN THE LAST SIX MONTHS >> IF I ASKED YOU TO MAKES THE DOWN SIDE CASE FOR BITCOIN WHAT

WOULD IT BE, IN YOUR MIND? >> YOU KNOW, 45,000. 42,000 >> WHAT WOULD GET YOU THERE? >> COULD BE — SOME REGULATORY, YOU KNOW, KERFUFFLE. COULD JUST BE THE MARKET GOT A LITTLE LONG AND YOU GET PEOPLE SCARED I DON’T SEE THAT AS A HIGH PROBABILITY, BUT, YOU KNOW WE

BROKE OUT. LOOK AT THE CHART. KIND OF BROKE OUT FROM 45 AND SO PUSHING THROUGH WHERE YOU BROKE OUT FROM HAPPENS OFTEN IN MARKETS. YOU KNOW, IT’S NOT SUPPOSED TO BE EASY TO MAKE MONEY. YOU GOT TO GET SCARED A FEW TIMES, AND THAT’S WHAT’S SO

IMPRESSED ABOUT THE CORBETT COIN COMMUNITY. THEY JUST — THEY JUST TAKE THE PAIN AND BUY MORE. I MEAN, SUCH A BELIEF SYSTEM AROUND THIS ASSET. WOULDN’T SURPRISE ME IF SOMETHING HAPPENED THAT WE’RE NOT PAYING ATTENTION TO. >> SO TOM LEE WAS ON THE BROADCAST EARLIER THIS MORNING

SAYING THAT HE THINKS THIS COULD BE AN $150,000 OF BITCOIN BY END OF THE YEAR. WHAT DO YOU THINK? >> YOU KNOW, WHEN MARKETS GET NEW BUYERS AND START BREAKING OUT, IT’S HARD TO HAVE PRICE PREDICTION I DO THINK WE WOULD TEST THE OLD HIGHS IN A RELATIVELY SHORT

PERIOD OF TIME TAKE OUT $69,000 — USUALLY DON’T GO RIGHT THROUGH THE FIRST TIME TOUCH THEM AND COME AUGUST THE WTHE — ALL THE BAY BACK AND MAD YOU DIDN’T SELL SOMETHING. COULD GET $ 50,000, $125,000 WHAT WOULD HAVE TO HAPPEN, THE FED TIMFINALLY PIVOTS CUTS RATES —

>> GO BACK A SECOND. HOW CORRELATED — FUNNY YOU SAID THAT, BECAUSE A LOT OF FOLKS THINK IT’S COORDINATED TO WHAT FED IS DOING AND TIMES IT SEEMS COMPLETELY UNRELATED. >> LISTEN, TWO STORIES WITH BITCOIN THAT ALWAYS HAPPENS. ONE, IT’S A MACRO ASSET.

THE SECOND, EARLY ON IN THE LIFE CYCLE. THERE’S AN ADOPTION CYCLE. RIGHT? RIGHT NOW THIS IS ALL ADOPTION NEW BUYERS COMING IN, AND BEING TOLD THE BIG PICTURE OR STORY. THAT YOU NEED TO HAVE THIS IN YOUR PORTFOLIO BECAUSE WE HAVE FISCAL RESPONSIBILITY NOT GOING

AWAY AND THIS IS A HARD ASSET AND MORE AND MORE PEOPLE ARE BELIEVING. DESPITE JAMIE DIMON AND WARREN BUFFETTS THAT THIS IS A HARD ASSET. DRIVING IT NOW IT’S STILL A MACRO ASSET SAME WAY GOLD HASN’T HAD A GREAT FUND, BITCOIN SUBSTITUTION HARDER TO CALL THE U.S.

GOVERNMENT — I MEAN THE U.S.