According to Novogratz, Developments at Binance are Positive for Bitcoin and the Crypto Sector!

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• In an interview on November 29, the CEO of the crypto investment firm expressed the belief that this high-profile deal needs to reassure concerned investors and users of the global exchange.
• The CEO of Galaxy Digital stated that a reasonable approach supported by investments and relationships with “serious” companies continues to be key.
• Novogratz also touched on the ongoing expectations for the approval of a Bitcoin exchange-traded fund (ETF) in the U.S. and the upcoming halving of mining rewards in 2024.

Mike Novogratz of Galaxy Digital explained why the developments at Binance are positive for both the crypto sector and Binance.

Novogratz Evaluates the Binance Deal

The $4.3 billion deal between Binance and the U.S. Department of Justice (DOJ) is considered a positive step for both Galaxy Digital and the general crypto industry, according to Mike Novogratz. In an interview on November 29, the CEO of the crypto investment firm expressed the belief that this high-profile deal needs to reassure concerned investors and users of the global exchange:

“I think they’ve made themselves a lot less risky in a lot of ways. People were worried about doing business with Binance. There’s a lot less worry now.”

Novogratz also shared his thoughts on major investment firms and traditional finance (TradFi) players dealing with exchanges, given that regulatory scrutiny remains a central issue in the U.S.

While emphasizing that a reasonable approach supported by investments and relationships with “serious” companies continues to be key, Novogratz also pointed out that mainstream finance has found itself on the wrong side of regulators in recent years.

Novogratz said, “If you look at the list of TradFi banks that have been penalized or fined by various regulators in the last 24 months, it’s a shocking list. So, you’re not looking for zero errors; otherwise, there wouldn’t be anyone left to talk to.” He also added that concerns about Binance potentially being shut down or fears of the exchange “stealing people’s money” in a situation similar to FTX are not valid:

“This came down to serious violations of KYC protocols, and they’ve worked to fix them, paid their fines, and are moving on,” said the CEO of Galaxy Digital, concluding, “I think it’s a clear positive for their company. I think it’s a clear positive for our industry.

Bitcoin price will be “significantly high”

Novogratz also addressed the ongoing expectations for the approval of a Bitcoin exchange-traded fund (ETF) in the U.S. and the upcoming halving of mining rewards in 2024. Novogratz said, “A lot of good things are happening for Bitcoin. We’re going to get an ETF. There’s some wait, and some of this is priced into the price.”

The investor mentioned that when an ETF is approved, a variety of investment and asset managers such as BlackRock, Fidelity, ARK Invest, and Galaxy Digital will activate their selling forces and try to persuade people to adopt Bitcoin:

“The price will be significantly high, especially in a period where the Fed is likely cutting rates. Can we go back to old highs by this time next year? Of course, we can.”

Novogratz also mentioned that Bitcoin’s halving has set up a “great story” and added that the 2024 U.S. elections could also play a role. Novogratz concluded his words by saying, “This uncertainty, the reason people initially invested in Bitcoin, is because of the lack of fiscal responsibility by the U.S., Europe, and Japan.”