Mike Novogratz - CEO of Galaxy Investment - has just provided profound insights into the current situation of Bitcoin, reflecting a challenging phase but also opening up great potential in the long term for the cryptocurrency market.
🧭 The two main stories of Bitcoin
According to #Novogratz , Bitcoin is currently living parallel to two major stories:
The macro story - Bitcoin is likened to 'digital gold', a safe haven asset when the global financial system is in turmoil. As confidence in the USD or traditional monetary policies wanes, Bitcoin becomes an alternative, similar to the role of gold.
The acceptance story - As a young asset, Bitcoin is still in the phase of building trust and coverage with the public. To expand, Bitcoin needs a stable environment where new investors feel secure to participate.
However, the current economic instability is hindering both of the above stories.
⚠️ The 'risk-averse' mentality dominates the market
In the context of complex geopolitical conditions, persistent inflation, and tight monetary policy, the global market has entered a 'risk-off' state - a risk-averse mentality. This makes new capital wary, and Bitcoin - instead of attracting investors - has fallen into the whirlpool of technical trading: selling, short selling, and buying back.
The disappearance of new investment capital makes the price #bitcoin struggle to establish a clear trend, and it has yet to assume the role of a safe haven like gold in the eyes of the majority.
🪙 Gold and Bitcoin: A mirror reflecting trust in the financial system
Novogratz also made a noteworthy comparison: Bitcoin and gold are 'scorecards' for the financial health of nations. When gold prices rise sharply or the yield curve inverts, it signals that the system is 'ailing'. In the future, Bitcoin may become a similar warning tool - but that will require time and maturity.
Although currently, Bitcoin cannot completely replace gold, Novogratz believes that this is not a permanent fate. With legal developments, the involvement of large institutions, and an increasingly clear role in the financial system, Bitcoin can certainly rise to become a reliable 'measure' of global financial trust in the future.
🟢 Long-term view: Trust is the decisive factor
The market is going through a difficult phase, but the long-term outlook remains very positive. If Bitcoin were a country, that country is gradually forming its institutions, building a constitution, and attracting its first citizens. The maturity of infrastructure, legal frameworks, and user trust will be the keys to helping Bitcoin transition from a speculative asset to one with long-term value.
📌 Risk warning: The cryptocurrency market is highly volatile and not suitable for all investors. This article does not constitute investment advice. Please assess the risks and conduct thorough research before participating.