According to Novogratz, the whole world “just decided” that cryptocurrency is indeed an asset class. He went on to say:
So everyone is short. Adoption is outweighing the macro story. Why gold is headed lower and BTC higher.Every big bank and big tech company moving in.
This would not be the first time that Novogratz noticed a market phenomenon. Earlier he declared that Bitcoin was an “institutional product,” when certain companies decided to invest in the popular crypto. Prior to this, the former hedge fund manager said that “the Rubicon” in the asset’s adoption had been crossed.
Since Novogratz has made timely and rather accurate remarks, it could indicate that Bitcoin will continue to attract more investors.
In fact, Daniel Ives, Managing Director and Senior Equity Research Analyst at Wedbush Securities said that public companies in US are going to follow Tesla’s Bitcoin investment strategy, in particular. According to him, Tesla’s Bitcoin strategy is “the start of a new age on the digital currency front.”
His firm’s survey found that in terms of investment, 3 to 5% of public companies will mirror Tesla and purchase Bitcoin, over the next 12 to 18 months. This figure could go up to 5% of companies that will add Bitcoin to their balance sheets unless there is regulatory clarity in the crypto market.
When it comes to the company’s performance, Novogratz thinks that Tesla is “breaking down technically.” This comment, prompted The Street founder, Jim Cramer, to troll the firm with a tweet that said: “the bell cow takes a break???” At the same time, Cramer urged people to “stop trading” since billionaire investor Ron Baron sold 1.8 million worth of his Tesla shares, over the past half-year.