Bitcoin [BTC] will reach highs when we have custody solutions – Micheal Novogratz

Michael Novogratz went on Fox Business yesterday to talk about the Bloomberg Galaxy Crypto Index. He also spoke about his past investing in Bitcoin and his opinion for its future.

The index was created in a partnership between Bloomberg and Novogratz’s Galaxy Digital Capital Management LP. The index aims to provide benchmarking of cryptocurrency assets for investors to use in a transparent fashion. It is currently comprised of the top 10 currencies by the overall market cap, even though Novogratz clarified that other currencies might be included based on liquidity and the overall state of the market.

Novogratz spoke about how he brought Bitcoin when it was $96. He said that he “sold a lot along the way” and that the retail bubble popped in January, leading to a 75% correction when Bitcoin was around $19000 and Ethereum around $1300. He said:

“The whole crypto revolution comes out of a breadown in trust in institutions.”

He explained how the aftermath of the recession caused the explosion of cryptocurrencies and digital assets. Post the 2008 financial crisis, Bitcoin emerged as a hope for so-called cypherpunks, as Satoshi’s whitepaper was released around this time. Novogratz says they felt like “this is an alternative”. He went on to say:

“The token mechanism is very cool. We don’t need to trust the center, we need to trust the network, the cryptology and the computer science.”

He spoke about the adoption of blockchain by corporates, giving an example of Microsoft’s system. He said:

“It would be shocking if every corporate treasury in 5-10 years doesn’t have a blockchain treasury. You’re cutting out lots of people and you’re cutting out a lot of mistakes.”

When asked about whether Bitcoin will reach the highs seen in January of this year, Novogratz said that he believed that it would. He said that it depended on the custody solutions for these digital assets, namely wallet services and private key storage solutions. He stated that until institutional names come into the market as custodians, Bitcoin would not reach its previous highs. He said:

“Sometime within the next 3-12 months big announcements will happen saying we’ll custody this stuff.”

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