Galaxy's Novogratz Sees Ether Outperforming Bitcoin in Next 3-6 Months

Crypto "on a heater"

Speaking in an interview with CNBC, Novogratz, noted that Crypto "is on a heater…so many things are going well for it" including the influx of capital from corporate treasuries and ETFs (exchange-traded funds).

The macroeconomic backdrop is also supportive, according Novogratz, even amid uncertainty over the future leadership of the US Federal Reserve. Fed Chair Jerome Powell is being hounded by the White House via the media because he won’t break the rules and make monetary policy at the President’s direction.

“This administration wants to put in someone very dovish,” Novogratz said. “I don’t think he [Powell] wants to cut rates. I don’t think he wants to be pressured.”

Novogratz also said that US business confidence is increasing on the back of budget legislation, tax breaks for capital expenditure and potential for foreign direct investment – all of which could translate to higher GDP (gross domestic product).

Bitcoin “on a tear”

Novogratz opined that:

• “Bitcoin is on a tear” and is “destined to go higher” as long as the US continues to move towards a lower interest rate environment.
• $150,000 is a “decent target” for Bitcoin
• Ether will “knock on the ceiling” of $4,000 a few times
• “Ether probably has a chance to outperform Bitcoin in the next three to six months.”

More volume

Ether weekly trading volumes recently surpassed Bitcoin for the first time since June 2024, according to a 23 July report by Cryptoquant. The research firm referred to the prior week when ETH saw $25.7 billion in spot volume versus $24.4 billion for Bitcoin.

Charting different courses

Novogratz mentioned to CNBC that he holds both coins. They have some way to go before they realize his projections.

• ETH hit a 12-month low of $1,383 in April of this year, before recovering to $3,861 this week for a 179% gain.
• It’s still trading some way below its all-time high above $4,800 recorded in November 2021.
• BTC has experienced several all-time highs in recent weeks, gaining 66% between April’s low and its record peak above $123,000 on 14 July.