- Mike Novogratz said Wednesday that ethereum is attractive as a technology gamble versus bitcoin’s appeal as an inflation hedge.
- The crypto bull said that ethereum is outperforming bitcoin as the Fed looks to tackle inflation.
- He added that the economy is booming and he expects markets to experience a “massive fourth quarter.”
Ethereum is overtaking bitcoin as the latter becomes less attractive as an inflation hedge in the face of the Federal Reserve’s aggressiveness heading into 2022, Galaxy Digital CEO Mike Novogratz said in an interview Wednesday.
With a fixed supply of 21 million, many investors have long viewed the world’s largest cryptocurrency as a hedge against inflation, especially in the face of unprecedented easy money policies aimed at keeping the economy afloat during the COVID-19 pandemic. . However, that could be questioned, as the US central bank turns aggressive in fighting inflation next year.
Speaking on CNBC, Novogratz said that as bitcoin loses some of its appeal as a hedge against a devalued currency, ethereum outperforms as its proponents see the potential in solutions enabled by the underlying technology.
“People see ethereum as a technology gamble,” Novogratz said. While bitcoin remains the most dominant cryptocurrency, its market share has dropped to around 40%, up from 70% as investors turn to other digital assets.
For Novogratz, ethereum becomes more promising compared to bitcoin as the Fed stops pumping cash into the economy. The billionaire crypto bull said that in any case, he expects a “monster fourth quarter” on the back of a booming economy.
He also presented his prediction of a continued bull run on stocks, adding that they are trading much more bullish than cryptocurrencies.
“Cryptocurrencies are not trading as optimistically as stocks because you see this tension, that the Fed is going to take the alcohol out of the punch bowl much sooner than we think,” Novogratz said in an interview Wednesday on CNBC. “Squawk Box “. “In general, that should not be good for risk assets.”