Michael Novogratz, the CEO of Galaxy Digital and a billionaire, is optimistic about the future of Bitcoin in the United States. He believes that a more favorable political environment for digital assets could push Bitcoin to new heights, potentially surpassing $100,000 by the end of the year.
Novogratz expressed his optimism during an interview with Bloomberg Television. He stated that if Bitcoin reaches $73,000 in the next few weeks, it could reach or exceed $100,000 by the end of the year. He considers this target to be feasible. Although Bitcoin reached an all-time high of $73,798 in March, it has struggled to regain that level. However, on Tuesday, Bitcoin rose by 2.8% to $71,005, its highest value in two weeks.
In recent weeks, sentiment towards cryptocurrency has become more positive. Novogratz highlighted that the US Securities and Exchange Commission (SEC) is moving closer to approving exchange-traded funds that directly invest in Ether. In addition, there has been a surge in political donations supporting pro-crypto candidates, including presidential candidates who are advocating for favorable crypto stances.
Novogratz believes that the political environment is now in favor of cryptocurrency. He mentioned that there is a growing consensus in Washington, D.C. that crypto legislation should be bipartisan, indicating progress towards regulatory clarity.
However, President Joe Biden recently vetoed a resolution that aimed to repeal the SEC’s Staff Accounting Bulletin 121. This bulletin requires financial institutions to keep crypto assets on their own balance sheets. Biden described the effort to repeal the SEC decision as a “Republican-led resolution,” even though it had bipartisan support. He argued that repealing the decision would limit the SEC’s ability to establish safeguards and address future issues, potentially undermining their authority over accounting practices.
Despite the veto, the Biden administration has shown a shift in tone towards the crypto industry. Reports suggest that crypto-focused super PACs are planning to invest millions in U.S. Senate races in Ohio and Michigan, demonstrating the broader political strategy of the crypto community.
In a unique development, Novogratz and Yat Siu, co-founder of Animoca Brands, have tokenized a Stradivarius violin from 1708 as collateral for a multimillion-dollar loan. Galaxy reportedly lent an undisclosed amount to Siu, who used the 316-year-old violin as collateral. The violin was converted into a non-fungible token (NFT), with Galaxy holding both the NFT and the physical instrument until the loan is repaid.
While the exact loan amount remains undisclosed, it has been confirmed to be in the millions. A custodian based in Hong Kong will hold the violin until an agreement between Siu and Galaxy allows its release. The violin, which was once owned by Russian Empress Catherine the Great, has a documented provenance dating back over 300 years.
Thomas Cowan, Galaxy’s vice president of tokenization, believes that tokenizing physical assets could revolutionize crypto lending. Traditional collateral tied to digital assets is often volatile. However, tokenizing valuable physical assets like the Stradivarius violin may provide more stable and secure collateral options for crypto loans. As regulatory frameworks and market sentiments continue to evolve, Bitcoin and other cryptocurrencies may achieve significant milestones in the near future.
