Mike Novogratz about Bitcoin: 'Asia sells it off and then the U.S. buys it back'

In an interview, billionaire investor Mike Novogratz spoke about crypto in general and Bitcoin specifically during a Thursday interview.

Novogratz, a former hedge fund manager, is the founder and CEO of Galaxy Digital. “A diversified financial service and investment management innovator within the digital asset and cryptocurrency sector,” he said.

Novogratz made the comments about Bitcoin during an interview that Joe Kernen did on CNBC’s “SquawkBox”. This was at a time when Bitcoin was trading at around $32,800.

Bitcoin’s recent price action

Mike Novogratz about Bitcoin: 'Asia sells it off and then the U.S. buys it back'

Novogratz appears to believe that Bitcoin could be in consolidation mode while the market absorbs the effects of the recent FUD around Bitcoin mining’s energy consumption as well as the crackdown in China on crypto-related transactions:

“We are consolidating here between 30-35. We’re seeing that Asia sells it off, and then the U.S. purchases it back. New money is flowing to crypto funds, venture funds, and hedge funds. There was a lot of buying at the beginning of the month and altcoins (e.g., Ethereum) made some really strong moves.

“And then, the Asians keep selling, right?” As part of the wider cold war we’re entering, China has declared war on crypto. So, I believe that we are still processing that.”

Crypto Regulation

Novogratz believes that crypto regulation clarity will benefit the whole space. However, the U.S. Securities and Exchange Commission can’t create its own crypto laws as that is something only the U.S. Congress has the ability to do.

It will be a good thing when Gary addresses the issue. He would love to regulate crypto. He doesn’t have that mandate. He needs Congress to give him the mandate. It’s a tight Congress. We will see what they do.

“But even if you have the mandate, I believe once you have rules, I think that it would be a relief to the market… Our politicians are as smart as they can be and know very little about crypto. We must do a better job of educating them.”

He believes that the SEC will approve a Bitcoin ETF if it is approved by Gary Gensler, the current Chairman of the SEC. Gensler also thinks that Gensler would like for the SEC to approve crypto-related ETFs. However, Gensler has a lot more pressing issues as the new Chairman of the SEC.

“I believe it’s likely the first quarter of next years. It could be the fourth quarter of next year. But that’s just my intuition. Gensler is a new job and you have a lot to do. How do you prioritize? It’s possible that a Bitcoin ETF was not on his top list.

“I know they are working on it, there are 13 to 14 applications. They have to do it. I know Gary wants to be intelligent and seen as smart, so he will do this. Chairman Clayton didn’t want crypto to deal with.