Young Americans want to have bitcoin, and they will use the stimulus checks to do so, said Galaxy Investment Partners’ CEO Mike Novogratz. He added that Bitcoin had become a proven asset class in the past few months with the entrance of institutions and corporations.
Retail Pushed Bitcoin Higher, Says Novogratz
The flagship cryptocurrency went on a wild run in the past few days. During the weekend, bitcoin broke its previous all-time high, breached above $60,000, and marked a new ATH at $61,700 before it dumped by $7,000.
While discussing the latest highly-volatile price actions in the market, the former hedge fund manager Mike Novogratz said that a similar 10% retracement is within the one standard deviation.
However, he focused more on the bullish developments and the recent record, explaining that the weekend run had everything to do with retail investors instead of institutions.
“The stimulus checks are coming. People are excited about that. A lot of the stimulus checks are going to young people who want to buy bitcoin.
This weekend was retail. What happens on the weekend is retail gets excited.”
Upon approving and signing the latest multi-trillion-dollar relief bill, the US government sent the first stimulus checks last week.
Further data supporting the narrative that retail investors induced BTC’s latest record came from the analytics firm CryptoQuant. By exploring the Coinbase Premium Index – a metric following institutional purchases on the large US-based exchange, the firm’s CEO said that the run was not “US institution-driven, it all came from stablecoins.”
Bitcoin is Now an Asset Class
Novogratz also said how has the perception of bitcoin changed globally in the past several months, following the entrance of giants such as MassMutual, Tesla, MicroStrategy, One Asset River Management, and more.
“In the last three months, we’ve had this secular shift where bitcoin has become an asset. It’s not ‘maybe,’ it’s not ‘it might be,’ it’s now an asset class. Cryptocurrency is an asset class. Every bank is moving in, every tech company is moving in, and all portfolios are starting to moving in.”
Consequently, he said that if investors are not long, they are ultimately short on BTC.