Cryptocurrency analyst Mike Novogratz predicts Bitcoin could reach $150,000 by year's end. However, he suggests Ethereum may surpass Bitcoin's performance in the same timeframe.
In a recent interview with CNBC, Mike Novogratz, the CEO of digital assets infrastructure company Galaxy, predicted that Ethereum could outperform Bitcoin over the next three to six months.
Novogratz's prediction is driven by several factors. One of the key factors is the growing institutional accumulation of Ethereum over Bitcoin. Companies such as Nasdaq-listed BitMine Immersion and SharpLink Gaming have been quietly amassing large Ethereum holdings, shifting some institutional treasury strategies from Bitcoin towards Ethereum.
BitMine Immersion has accumulated $2 billion worth of ETH, while SharpLink Gaming has bought over $1.3 billion in ETH. This trend is not going unnoticed, as American investors are investing heavily in ETH exchange-traded funds. Last week, ETH exchange-traded funds collectively added over $2.1 billion, and on one day alone, they received over $726 million in net inflows.
Another factor that Novogratz points to is Ethereum approaching a key psychological and technical price level of $4,000. If broken, this could trigger significant price discovery and a major rally for Ethereum. In contrast, although Bitcoin recently set a new all-time high mark of $122,838, Ethereum has been closing the performance gap due to this growing institutional adoption and ETF optimism.
Ethereum's trading price recently hit a 2022 record of $3,848 on Monday, and it was trading at nearly $3,730 per coin, according to CoinGecko. This is significant, as Ethereum is still 24% below its all-time high of $4,878 that it hit in 2021.
Novogratz also highlighted the limited supply ("limited float") of Ethereum in the market, which combined with rising institutional demand creates strong upward price pressure. This, along with macro trends favoring risk assets and inflation-hedged investments, is expected to lift demand for both Bitcoin and Ethereum. However, Novogratz believes Ethereum is currently better positioned to lead the next crypto rally in the short term.
While Novogratz anticipates Bitcoin may also reach $150,000 this year, his bet is on Ethereum providing stronger percentage gains during the coming months. The narrative of Ethereum is considered powerful, according to Novogratz, and he predicts that Ethereum could hit $4,000 soon.
In summary, the growing institutional accumulation of Ethereum, its approaching key technical breakout level, the limited ETH market float combined with rising institutional demand, macro trends favoring risk assets and inflation-hedged investments, and recent data showing stronger ETH inflows and trading activity relative to BTC make Ethereum poised to outpace Bitcoin’s returns in the near term, even if Bitcoin’s absolute price remains very high.
Institutional investors such as BitMine Immersion and SharpLink Gaming have been accumulating significant amounts of Ethereum, contributing to a shift in institutional treasury strategies away from Bitcoin towards Ethereum. American investors have also been investing heavily in Ethereum exchange-traded funds, with ETH ETFs adding over $2.1 billion last week alone.
Ethereum's trading price recently hit a 2022 record of $3,848 on Monday, and while it is still 24% below its all-time high of $4,878, its limited supply in the market and rising institutional demand create strong upward price pressure.
According to Mike Novogratz, the CEO of digital assets infrastructure company Galaxy, Ethereum's approaching key psychological and technical price level of $4,000 could trigger significant price discovery and a major rally for Ethereum. Novogratz anticipates that Ethereum may hit $4,000 soon.
Despite the prediction that Ethereum could outperform Bitcoin over the next three to six months, Bitcoin recently set a new all-time high mark of $122,838. However, Ethereum has been closing the performance gap due to this growing institutional adoption and ETF optimism.
While both Bitcoin and Ethereum are expected to benefit from macro trends favoring risk assets and inflation-hedged investments, Novogratz believes Ethereum is currently better positioned to lead the next crypto rally in the short term, even if Bitcoin's absolute price remains very high. This is based on factors such as institutional accumulation, approaching key technical levels, limited supply, and recent trading data showing stronger ETH inflows and activity relative to BTC.
