Mike Novogratz of Galaxy Digital is skeptical of the sudden altcoin rally that crypto enthusiasts have been witnessing over the past several days.
Mike Novogratz: What the Heck Is Going On?
A wide variety of cryptocurrencies – including Ethereum (ETH), Ripple’s XRP and bitcoin SV (BSV) – have all jumped over the past week, with bitcoin SV surging by as much as 99 percent. This likely stemmed from the news that Craig Wright was cooperating in the lawsuit against him by Ira Kleiman, who claimed that the London-based bitcoin developer was looking to cheat his family out of a potential crypto inheritance.
But Novogratz has some doubts about this sudden surge, and he’s not sure what to make of altcoins in the future. Will they continue to spike? Is all this a fluke? The hedge fund manager took to Twitter to express his thoughts:
I’m not sure I understand the altcoin rally. Happy for those making money on it, but not sure what changed.
He’s now offering his followers a big “dinner” granted they can come up with a solid explanation.
Novogratz isn’t the only one who feels this way. Many in the crypto industry are scratching their heads regarding why altcoins could experience such monster-sized surges in just a matter of days. While it’s true that bitcoin itself has been doing quite well as of late, some are not convinced that this is just a case of altcoins following in the big asset’s footsteps.
Dave Balter of Flipside Crypto Inc. believes that the rallies have nothing to do with anything within the crypto space itself. Rather, he’s convinced this has more to do more with outside payment options expanding on their services including popular credit card company Visa, which recently took over Plaid – a fintech firm that looks to connect customer banking data to financial applications.
Some of Plaid’s tools power Coinbase and several other leading crypto trading platforms. In a recent interview, Balter comments:
If you’re in the crypto investing business, I think it’s a pretty big signal of confidence that the true financial institutions are entering the space and continuing to do big things.
The asset that appears to have everyone confused is bitcoin SV, as mentioned earlier. The currency – which emerged from a forking of bitcoin cash in late 2018 – experienced record price surges early last week and ultimately shot up over $300 for a brief period. The currency nearly doubled its price, and some are raising an eyebrow or two.
Many Don’t See the Rally as Valid
Speaking of the current rally, David Tawil – president of Pro Chain Capital – explained:
It’s a renaissance, and I’m not particularly excited about it. I don’t think it’s particularly welcomed at this point because we still haven’t gotten the fundamental building blocks necessary for the established coins or for bitcoin.