Bitcoin could experience another surge, according to Galaxy CEO Mike Novogratz, as the U.S. Federal Reserve restarts its cutting cycle. Momentum is also expected to come from regulatory reform.
Bitcoin has likely been trading sideways due to corporations focusing on stacking altcoins lately. However, according to Mike Novogratz, CEO of asset manager Galaxy Digital, an upswing could be coming later in the year.
During an episode of CNBC’s Squawk Box on Thursday, Novogratz stated that “Bitcoin’s at a consolidation right now. This is partly because a lot of these treasury companies in other coins are taking their shot.”
Among altcoin treasury firms, blockchain tech company BitMine Immersion Technologies has been at the forefront. It recently acquired $200 million worth of Ether (ETH), which grew its total stockpile to more than $9 billion in ETH.
Altcoins Inject Capital and Momentum
Meanwhile, a Nasdaq-listed design and manufacturing company, Forward Industries, announced on Monday that it had secured $1.65 billion in both cash and stablecoin commitments. These funds will be used to launch a crypto treasury strategy centered on Solana (SOL).
Novogratz said that deals like these, which are led by crypto-native companies such as Galaxy Digital, Jump Crypto, and Multicoin Capital, are “bringing energy into the crypto space” and “bringing money into the crypto space.”
“And Bitcoin is kind of going sideways a little bit. I think, while these other ecosystems are having their moment, I think probably we have another big surge up towards the end of the year.”
Bitcoin Poised for Surge Amid Positive Developments
According to CoinGecko, Bitcoin has been fluctuating between $110,055 and $116,083 over the past seven days.
A Bitcoin surge could return, according to Novogratz, as the U.S. Federal Reserve begins its “cutting cycle.” Momentum could also be generated by continued positive developments in the space, such as Securities and Exchange Commission Chair Paul Atkins discussing the modernization of securities regulations to help move markets on-chain.
The Galaxy Digital CEO also mentioned that the Nasdaq stock market operator filed a rule change with the SEC on Monday to allow for tokenized versions of listed stocks and ETFs.
Novogratz said that the blockchain revolution had “really just been Bitcoin as a store of value” and then “stablecoins as cross-border payments.”
“And what held us back was blockchains being fast enough, safe enough, secure enough and trusted enough, and more importantly, a regulatory framework that allowed people to experiment. And so now we have both.”
The Crypto Market’s Shift from Narrative to Plot
Novogratz also anticipates that, despite “healthy competition” among different crypto firms, it is improbable that just one company will ever dominate the space, which can happen in traditional finance.
“Ethereum has its own community, narrative, and use case,” he stated. “It will compete with Solana and other blockchains, but we are not going to have one blockchain that rules them all.”
“But most importantly for the space, money is going to move into the space, as we start moving from narrative to plot.”
