Galaxy Digital founder and CEO Mike Novogratz is encouraging investors to devote a larger percentage of their portfolios to crypto.
In an interview with CNN’s Julia Chatterley today, Novogratz said he had “changed his tune” on previous advice that investors should allocate roughly 1% of their net worth to Bitcoin (BTC) and other cryptocurrencies. The CEO has said as recently as November that people should invest up to 3% into BTC and HODL for five years.
“I think a new investor could put 5% into Bitcoin,” said Novogratz. “Bitcoin’s not going back to zero [...] It could certainly trade back to $14,000 — you could lose 30-40%, but you’re not losing 80-90% of your money.”
"You're going to see every single financial institution forced into this space."
"We're at the beginning innings of rebuilding the infrastructure that American & global business will be done on in the future." pic.twitter.com/b0hdiQwrrG
— Julia Chatterley (@jchatterleyCNN) December 8, 2020
Novogratz said these numbers were based on the "stability surrounding Bitcoin," adding that the coin was "fulfilling its role as digital gold" with a store of value. The CEO also said he believes Bitcoin volatility will "come lower."
The Galaxy Digital CEO has an estimated net worth of $700 million. When Chatterley pressed him to put a number on his investments, Novogratz said his “overall crypto exposure is probably 50%."
Novogratz has also advocated investing at least some of one's net worth in Ether (ETH), while stating the token had "a venture flare to it." He hedged his bets on other altcoins, saying that some would have "a lot of value" in the future, while others wouldn't.
Novogratz is well known for his prominent Bitcoin plugs. In November, he predicted the price of Bitcoin would go "to 20K and then To 65K.”