Galaxy Digital CEO: Increased Bitcoin adoption is a key factor in growth

Mike Novogratz, CEO of financial services company Galaxy Digital, recently expressed his usual bullish view on Bitcoin on CNBC’s Squawk Box morning show. In the clip, the host asked Novogratz about the relationship between Bitcoin (BTC) and gold. He pointed out that large investors seem to be buying cryptocurrencies after selling gold assets, and that gold outflows have recently reached an all-time high.

“I think it makes sense, but it’s not what’s happening,” Novogratz said Tuesday morning, noting that “what’s happening is that a ton of different accounts have adopted bitcoin and cryptocurrencies,” before mentioning Guggenheim’s recent interest in investing $500 million in the Grayscale Bitcoin Trust.

Novogratz mentioned the mainstream investors who invested in Bitcoin in 2020, including billionaire hedge fund investor Paul Tudor Jones and business intelligence company Microstrategy, saying, "It's just a group of institutional investors who are changing their minds or realizing that now is the time to buy Bitcoin and Bitcoin has gained enough liquidity."

“If Bitcoin was easy to buy, the price would be much higher,” Novogratz explained. “People can get similar exposure to exchange-traded funds through the Grayscale Trust, which is a very interesting way to invest.”

In contrast, gold lover and Bitcoin skeptic Peter Schiff remains against Bitcoin. Schiff wrote on Twitter on Tuesday: "CNBC's excessive coverage of Bitcoin has brought financial news ethics to a new low. Their constant propaganda has legitimized Bitcoin in the eyes of their viewers, and many people will buy Bitcoin, but when whales sell Bitcoin, they will only become CNBC's scapegoats."

Schiff slammed the entire CNBC report on Twitter. While he did not directly mention this part of the report, the timing of his comments appeared to coincide with an appearance on the "Squawk Box" morning show, shortly after Novogratz joined the show.

“Bitcoin evangelists assure holders that trend investors will rush to buy once Bitcoin hits new highs,” Schiff tweeted on Tuesday.

“When whales sell Bitcoin, it allows small investors to buy. Bitcoin hits a new high, but the reason is not the influx of new money, but the cashing out of old money.”

Bitcoin surpassed its all-time high of $19,892 early Tuesday morning, briefly surging to around $19,915 on Coinbase before plunging more than $1,500.