Mike Novogratz, head of Galaxy Digital, believes that the adoption of key cryptocurrency laws in the USA will radically change the market and may disrupt the traditional four-year cycle.
In an interview with Bloomberg, Novogratz stated that two important laws — the GENIUS Act, which regulates stablecoins and was signed in July, and the CLARITY Act, which defines the jurisdiction of regulatory bodies in the cryptocurrency sector — will lead to a massive influx of new investors.
'This is a significant breakthrough. These two pieces of legislation will attract a huge number of new investors to the cryptocurrency market,' he noted.
Many investors believe that the cryptocurrency market follows a four-year cycle associated with Bitcoin halving. The last halving occurred in April 2024, so some believe that the current bull market may soon come to an end.
However, Novogratz believes that this cycle may differ from previous ones. Investors are unlikely to sell assets at the peak at the end of the year, as happened in 2017 and 2021.
The head of Galaxy Digital emphasized that previously, people could not use stablecoins on iPhones or social media apps, as their legal status remained uncertain. 'But now they are legal,' he added.
Coinbase CEO Brian Armstrong supported Novogratz's position. He expressed confidence that Congress would pass the CLARITY Act, which will clearly define the roles of the country's financial regulators regarding cryptocurrencies.
Last week, Congressman French Hill reported that the House Financial Services Committee hopes to consider legislation in October or November.
Novogratz does not consider the involvement of the Trump family in the crypto business a problem, expressing confidence that the Securities and Exchange Commission (SEC) will monitor possible conflicts of interest.
'I don't think it's possible to ban the children of influential people from doing business,' he said.
The head of Galaxy Digital noted that Democrats may inflate the scandal around what they consider the 'machinations' of the Trump family and potentially oppose the bill on the structure of the cryptocurrency market.
According to Novogratz, among Democrats there are now enough who see the value of cryptocurrencies for passing the legislation. However, he believes that it was 'foolish on the part of Democrats to oppose cryptocurrencies' during last year's presidential election.
Speaking about the recent market crash, when liquidations on the spot market reached $200 billion, Novogratz blames the decline on 'large sales by Chinese miners' and 'bearish comments from Arthur Hayes regarding Hyperliquid.'
'Hyperliquid was hit the hardest, and this affected the overall market sentiment, but I think it's just a pullback,' he explained.
Recently, Hayes sold his entire stash of tokens $HYPE to make a deposit for a brand-new Ferrari. Since then, the token has fallen more than 23% from last week's all-time high, as major holders continue to offload it.
