Mike Novogratz has joined the $1 million Bitcoin bandwagon, suggesting that institutional adoption would push the asset past gold.
The Galaxy Digital founder and CEO made the prediction on CNBC’s Power Lunch on Thursday. He cited institutional adoption and a growing preference for Bitcoin over gold as possible catalysts for this uptrend.
This comes as Bitcoin corrects further from the weekly high of $110,300. The premier asset is down 5.5% from the Tuesday high to $104,269 at the time of writing, but remains up 1.48% in the past seven days.
Bitcoin Becoming an Institutionalized Macro Asset: Novogratz
Novogratz suggested that Bitcoin is becoming an institutionalized macro asset and now sits alongside assets like gold, silver, and the S&P 500. He highlighted that one of the enablers for this newfound traction was partly fueled by the global loss of interest in the US dollar and diversification into assets like Bitcoin.
Furthermore, he cited BlackRock’s involvement as a significant turning point for Bitcoin and a catalyst for the institutional interest. For context, $11.5 trillion asset manager BlackRock launched its iShares Bitcoin Trust (IBIT) fund in January 2024, following the US SEC’s approval, providing an easier means of exposure to Bitcoin.
Novogratz stressed that this shift in attention to Bitcoin occurred as wealth managers and institutions began piling into the macro asset under BlackRock’s influence. Now, he noted that everyone is buying Bitcoin, viewing the pioneering cryptocurrency as a store of value.
“Now we’ve got all these treasury companies buying Bitcoin, we’ve got sovereign wealth buying Bitcoin, we’ve got retail investors buying Bitcoin; there’s easier ways to get it,” Novogratz told CNBC.
Interestingly, Strategy’s playbook has become a new trend as public companies take a page from the business intelligence firm’s Bitcoin strategy. New entrants, including Metaplanet, the Blockchain Group, GameStop, and Trump Media, are raising millions to purchase Bitcoin, contributing to the asset’s scarcity and increasing its appeal.
Bitcoin to Slowly Replace Gold, Hit $1M
Meanwhile, Novogratz described Bitcoin’s adoption as a means of financial preservation as a “ball rolling down the hill,” predicting that this will ensure it matches toe-to-toe with gold in the near future. He stated that the new generation of investors would buy Bitcoin over gold, with the limitedly capped digital currency replacing the precious metal over time.
The CEO also noted that Bitcoin has more room to grow relative to gold, predicting a 10-fold increase in its market cap to reach $1 million per coin. Notably, the price mark is becoming a commonplace outlook for Bitcoin enthusiasts as many grow increasingly confident that it is attainable.
Michael Saylor, Binance’s Changpeng Zhao, and Brandon Green have all predicted that it would happen during this bull cycle.
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