Why (and when) Mike Novogratz expects a “reversal” move for Bitcoin and Ethereum

Mike Novogratz, CEO of Galaxy Digital Holdings Ltd (Pink: BRPHF), believes that the recent rise of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: BTC) has been driven by new participants getting involved with cryptocurrencies and increasing enthusiasm for the space. Mike said Thursday on CNBC's "Squawk Box" that the total market cap of cryptocurrencies as a percentage of global wealth is about 0.5%, adding that he expects that number to "go up a lot over the next few years." What's next in the world of cryptocurrencies: A counter-offset movement for cryptocurrencies may be about to happen, according to the CEO of Galaxy Digital.

“What I absolutely see is a scenario where we give up on the rise of Bitcoin and we have one of those moves that are expected in all cryptocurrencies in the fourth quarter,” Novogratz said. Compare the expected movement to a horse race. The horse that reaches the corner first at the end of the race seems to be the fastest.

Likewise, “Future assets in the fourth quarter usually have great closing prices because everyone is crowding in and pushing value up and I see that happening now.” He added: People will be surprised and wonder how Bitcoin reached $80,000 or $100,000 and how Ethereum reached $5,000. Cryptocurrency markets have been tested when they are down, but they always show resilience.

“The market froze all its money because of the influx of new money coming in,” Novogratz said. He noted that there was $17 billion in new investment capital entering cryptocurrency markets in the first half of the year: “It's a massive influx of both power and money.” Actual price of Bitcoin, Ethereum, BTC and ETH: At press time, Bitcoin is down 0.34% at $54,179 over 24 hours and Ethereum is up 0.89% at $3,600 over 24 hours.

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