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Galaxy Digital CEO Mike Novogratz says the top two crypto assets by market cap could explode past previous all-time highs if institutions start allocating small amounts of capital to digital assets.<\/p>\n
In a new interview with CNBC, the billionaire says<\/a> that the US government\u2019s growing inability to maintain a budget and avoid deficits is bullish for crypto.<\/p>\n Faced with the likelihood of higher inflation and lower interest rates, Novogratz says that if institutions decide to allocate even small amounts of their portfolio to crypto, Bitcoin (BTC<\/a>) and Ethereum (ETH<\/a>) would experience a supply crunch and go parabolic.<\/p>\n \u201cI\u2019ve been down to D.C. a lot in the last four months. If I had any faith that we would get a Simpson Bowles amendment to balance the budget or have any fiscal prudence, I wouldn\u2019t be as bullish on Bitcoin. But I just don\u2019t, and we\u2019re going into an election year. <\/em><\/p>\n So you\u2019ll have a Fed cutting with a 5% budget deficit and a projected 5% budget deficit next year and the following year. If people start shifting 1% of their portfolio, institutions, 1%, not 10, just 1, there isn\u2019t a lot of supply in Bitcoin or Ethereum.\u201d<\/em><\/p>\n Novogratz, an early Ethereum investor, says that Bitcoin is entering an unprecedented supply and demand dynamic that he believes could easily put BTC well above its previous all-time high.<\/p>\n \u201cWe have customers that are platform customers and buy enough Bitcoin every day to take out all the miners. So when you think about the supply\/demand dynamic, we haven\u2019t really had a situation where you have a global market and something of such limited supply. And so I think Bitcoin can go far higher. I think the first stop next year will be the old highs, $69,000, but it wouldn\u2019t surprise me if it went beyond that.\u201d<\/em><\/p>\n BTC is worth $42,411 at time of writing, while ETH is trading for $2,194.<\/p>\n