'This is not November 2017' says Mike Novogratz on bitcoin's price gyrations

Episode 1 of Season 3 of The Scoop was recorded remotely with The Block’s Frank Chaparro and Mike Novogratz, CEO of Galaxy Digital.

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After bitcoin's price fell from its highs above $40,000 this past weekend, investors were left arguing about whether that drop to almost $30,000 was an inevitable market correction or a sign of something more sinister.

Indeed, liquidations across futures venues soared to more than $3 billion as crypto exchange Coinbase reported persistent technical issues. But Galaxy Digital's Mike Novogratz isn't particularly worried. 

"I am positive this is not November 2017," he said on this week's episode of The Scoop. "Listen, the market got way, way overbought. It was overbought by every statistic, every metric you can look."

In spite of a fallen price, Novogratz said the real thesis of the past few months was adoption. More people have heard the bitcoin story, according to Novogratz, and a price correction won't meaningfully undercut that progress. There are still institutions waiting to buy, he said.

"The bitcoin-as-a-hard-asset story remains intact," Novogratz added. "This is a wash-out, a position wash-out. I don't think it will be long-term damaging. $30,000 should hold." 

He went on to highlight institutional firms that "haven't filled their coffers yet that continue to want to buy."

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"Insurance companies, asset managers, big institutions haven't bought bitcoin yet and they want to," said Novogratz.

During this week's episode, Novogratz explains how he and Galaxy Digital are navigating the market correction, as well as: 

  • Why this price drop won't scare off institutional investors
  • The impact of the macro background and fiscal spending under a Joe Biden-led administration
  • The businesses he's most excited about, particularly in the decentralized finance space
  • How he's viewing Bakkt and Coinbase's plans to go public
  • His advice for new market entrants.

Listen to this week's episode on Apple, Spotify, Google Play, Stitcher or wherever you listen to podcasts.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.