Speaking on Bloomberg TV on Aug. 29, the founder of merchant bank Galaxy Digital noted that regardless of this week’s sideways trading, Bitcoin was still up over 200% this year.
Unlike altcoin markets, the largest cryptocurrency was in separate league, and had broadly delivered for investors.
“Bitcoin started the year at $3,800, traded at $3,500 and now it’s at $10,200 and so it’s up 200% odd percent already,” he told the network. He added:
“It has had a huge run, and so I think this is a bit of consolidation.”
Institutions “getting their ducks lined up”
Novogratz was speaking just hours before Bitcoin markets experienced a sudden dip which took them $500 lower in a matter of minutes.
While no single factor appeared to trigger a change in sentiment, the move was in line with behavior seen often in recent months. As Cointelegraph reported, margin trading is increasingly considered as a major factor behind sudden changes in BTC/USD.
As of press time Thursday, the pair was nonetheless lower still, averaging just over $9,500 on the back of 6.3% daily losses.
For Novogratz, however, increased entry of institutions into the arena will spark the next phase of Bitcoin’s bull cycle.
“The institutions that are making longer-term decisions are making sure they’ve got custody, making sure their ducks are lined up — and they’re slowly and steadily moving in,” he continued.
Novogratz is well known as a Bitcoin permabull. In August, he said global macroeconomic turbulence would fuel favorable price movements going forward, while a month previously, he pledged not to sell any more of his holdings below $14,000.
