The cryptocurrency markets had been trending lower over the past two months before rebounding sharply higher over the last week.
Crypto has bounced back because institutions are buying, Galaxy Digital Holdings Ltd (OTC:BRPHF) CEO Mike Novogratz said Wednesday on CNBC’s “Squawk Box.”
Crypto exchange FTX Trading recently raised money from some of the best investors in the world, Novogratz said. This shows that crypto isn’t going away and the “smartest investors in the world are participating,” he added.
The recent rally was partly due to short sellers covering positions and partly due to the recognition that crypto is here to stay, he said.
Related Link: Bitcoin Teases $40,000 — Are We Seeing A Short Squeeze?
Bitcoin (CRYPTO: BTC) is 13 years old and Ethereum (CRYPTO: ETH) is just six years old, Novogratz said: “we are still very early in the adoption of these new technologies.”
In The News: A lot of people are buying Bitcoin because they are worried about fiscal and monetary policy, he said.
The crypto revolution came from Gen Z and millenials as a response to people like U.S. Senator Elizabeth Warren, Novogratz told CNBC.
Warren publicly asked Treasury Secretary Janet Yellen to address the risks of cryptocurrencies this week.
Cryptocurrency is a progressive technology and Warren is supposed to be progressive, Novogratz said. Crypto is the cheapest way to send money peer-to-peer, he said.
We are still in the very early innings of the cryptocurrency movement, Novogratz said: “DeFi is going to work.”
Read More: www.benzinga.com