Galaxy Digital boss Mike Novogratz says that the biggest players are waiting for a certain sign from the crypto markets before looking at allocating capital to the nascent asset class.
In a new interview with Raoul Pal on Real Vision, the crypto veteran says that institutions have mostly done all the due diligence they need on the space, but may be waiting for retail traders to jump in first.
“Crypto needs the retail participants to come back to these communities to buy in, to believe, to drive price, because that’s what’s going to get institutions back engaged. Institutions intellectually understand this business. They understand blockchain versus Bitcoin versus Ethereum. They’ve done all their homework, [but] they’re gun shy. It is going to take energy. Energy is price.”
Last week, the Department of Justice (DOJ) announced an enforcement action against little-known crypto exchange Bitzlato, but didn’t reveal the exchange’s name until the time of the press conference. Novogratz says he had his fingers crossed the enforcement action wouldn’t have anything to do with Binance, as he says the largest crypto exchange’s success is crucial for retail traders and the crypto space in general.
“There was this announcement today that the DOJ was going to [announce an enforcement action]… and I was like ‘Please, don’t have it be Binance.’ Listen, we need to cheer for Binance. We do. They are 60% of the liquidity, or 40%, some giant percentage of the liquidity. CZ (Changpeng Zhao) has been always very focused on customer service. So he’s got a very loyal giant retail following that believe in our ecosystem.
Like, we need those guys. It drives me crazy how many people on Twitter and other media just want to smash people down and would be no happier if CZ stepped on a banana peel and slipped on his ass. It’s the wrong thinking. We need CZ to succeed.”
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Source: https://dailyhodl.com/2023/01/29/galaxy-digitals-mike-novogratz-says-institutions-waiting-for-key-indicator-to-flash-before-eyeing-crypto/