Hedge Funds and High-Net Worth Investors Turning to Bitcoin (BTC) in Wake of Coronavirus Pandemic, Says Mike Novogratz

An increasing number of hedge funds and high-net worth individuals are investing in Bitcoin in the wake of the financial shakeup caused by the coronavirus pandemic, according to Mike Novogratz.

Novogratz, founder and CEO of digital assets merchant bank Galaxy Digital, tells Bloomberg that increased adoption and pandemic-related economic measures taken by central banks suggest that “this is the time for Bitcoin.”

“The risk on any store of value, if it’s gold, is that enough people believe in it. It’s still a question of adoption. I’m just seeing more adoption here in the U.S. and in Europe than I have literally since I started this.”

The BTC bull has remained optimistic that the asset will rebound following the pandemic-induced crypto market crash, saying he recently increased his Bitcoin holdings.

There are some indications, however, that his appetite for enduring crypto’s volatility is limited. In a recent interview with CNBC, Novogratz said he expects the price of BTC to double in six months, but if his prediction turns out otherwise, he may give up on the crypto market.

“If it doesn’t go all out by the end of the year, I think I might just hang my spurs. Because if it doesn’t go up now, you know, I’m not sure when it will…

We should have doubled within six months, we really should have. This is the time, maybe within the end of the year.”

Novogratz’s merchant bank is coming off a rough quarter.

According to recently published financial results, Galaxy Digital’s net comprehensive loss in 2019 Q4 was $32.7 million.

The company did make a net comprehensive income of $25.8 million on the year, though that followed $272.7 million in losses in 2018.  

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised…

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