Billionaire bitcoin bull Mike Novogratz says Elon Musk’s tweets aren’t helping crypto – he just likes the attention

Billionaires Mike Novogratz and Elon Musk.
Mike Novogratz and Elon Musk.

  • Mike Novogratz said Elon Musk’s eclectic tweets aren’t good for cryptocurrencies.
  • “What are you doing? I don’t think it’s helpful,” Novogratz said amusingly in a recent interview.
  • Musk’s bitcoin craze may be why his company is going through something of a lull, Morgan Stanley recently said.
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Elon Musk may be the entrepreneur of his generation, but his crypto-themed Twitter outbursts aren’t good for other investors, billionaire Mike Novogratz said in a recent interview with YouTuber Logic.

The Galaxy Digital CEO described Musk as “smart and thoughtful,” but said his often-eclectic tweets were “just not helpful for the crypto world.”

“He likes the attention. He likes talking about CumRocket,” Novogratz said, referring to the cryptocurrency that provides a marketplace for the adult content industry. “Come on, you run for the best companies in the world. What are you doing? I don’t think it’s helpful,” he added.

Musk’s tweets have created quite a stir for mainstream cryptocurrencies including bitcoin and dogecoin, showing just how nascent the asset class is. The world’s most popular digital asset got a boost by Tesla investing $1.5 billion in it back in February. But a lot of new retail investors tend to panic sell post his tweets, causing wild fluctuations in its price.

Some analysts expected his tweets to have less of an impact on the market after the entrance of institutional investors in the space, but so far it seems far from that point.

Morgan Stanley recently said Musk’s bitcoin obsession may be why investors are less focused on his electric-vehicle maker’s other involvements such as renewables, storage networking, and transportation. “Might Tesla-bitcoin fever may be telling us something about the lull in Tesla sentiment?” the bank’s analysts said.

Novogratz also spoke of how bitcoin’s true value lies in the community of people around it, and that it would be worthless if no one believed in its potential.

Bitcoin was last trading 2% lower around $38,746 on Thursday. It is up 33% so far this year.

Read More: A CEO from a leading crypto miner details the 6 factors his company uses when doubling down on an investment – and shares 2 metrics you need on your radar

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Billionaire investor Mike Novogratz says bitcoin’s value is a social construct and it would be worth less if governments weren’t printing money like ‘toilet paper’

In this screengrab, Mike Novogratz poses in front of the camera wearing a black hoodie in a park on October 21, 2020.
Mike Novogratz.

  • In a live stream on Wednesday, Mike Novogratz said the true value of the cryptocurrency lies mainly in the community it has built.
  • “The value of bitcoin isn’t the bitcoin code. It’s this social construct. It’s valuable because we say it’s valuable,” he said. “It’s crazy.”
  • He also said bitcoin is more valuable because governments are printing money like “toilet paper.”
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Billionaire investor and long-time cryptocurrency bull Mike Novogratz said the true value of the bitcoin lies mainly in the community it has built, and that it is valuable because people say it is.

Novogratz, the CEO of Galaxy Digital in a live stream with rapper Logic on Wednesday touted the technology underpinning bitcoin but said this would be worthless if no one believed in its potential.

“The value of bitcoin isn’t the bitcoin code. It’s this social construct. It’s valuable because we say it’s valuable,” he said. “It’s crazy.”

Novogratz, whose firm offers cryptocurrency-focused services to investors, said many people have come up to him asking him if he is the CEO of bitcoin. But the billionaire said he just sees bitcoin’s potential, and name dropped other big names backing the cryptocurrency such as MicroStrategy’s CEO Michael Saylor.

“The one thing to remember about the technology, which was cool, is it was the first digital signature you couldn’t counterfeit,” he said. “And so that meant we could have digital money because it could be scarce. If I said they’re 21 million, they’re only 21 million cause you can’t counterfeit.”

He described this as a “profound concept,” highlighting the limited supply of the cryptocurrency.

“You say, well, sounds like a Ponzi, but everything that’s valuable is some form of a Ponzi. It’s valuable because we bring more people in to buy it,” he said. “It wouldn’t be so valuable if our governments weren’t…just printing the money like it’s toilet paper.”

Bitcoin has been trading sideways following the massive crash in May but reclaimed $40,000 this week. Last month’s massive selloff slashed bitcoin’s market capitalization by almost 30% to $766 billion.

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Bitcoin bull Mike Novogratz says the cryptocurrency will not be used as a payment system, but investors should buy it for protection against ‘insane’ global deficits

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  • Mike Novogratz said bitcoin will not be used as a form of payment because the network can’t support thousands of transactions.
  • The long-time bitcoin bull said the cryptocurrency is a store of value asset akin to a digital gold.
  • He added that with “insane” global deficits, investors would be crazy to get out of bitcoin.
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Billionaire bitcoin bull Mike Novogratz said that the cryptocurrency will not be used as a form of payment because the network isn’t set up for it.

In an episode of the Exchanges at Goldman Sachs podcast, the Galaxy Digital Holdings CEO played up bitcoin’s use case as a store of value and asset class, and not a new form of payment.

“Bitcoin’s not going to be payments. The system really isn’t set up for payments. It’s not fast enough for thousands and thousands of transactions,” he said.

Bitcoin’s anonymous founder, Satoshi Nakamoto, presented bitcoin as a peer-to-peer cashless digital currency in the 2008 white paper. But now, crypto investors like Novogratz see other digital currencies taking on the payment role, and say bitcoin will be more akin to a digital gold.

Novogratz said the investment case for bitcoin lies in the fact that it’s the most distributed asset in the history of the world outside the dollar, and it’s a uniform store of value.

“What’s unique about stores of value is they’re social constructs,” he added. “It has value because we say it has. There has never been a more successful brand created in 12 years by a community. It was like they floated the baby in the river, and the community raised the baby and it’s now worth around $1 trillion.”

The current macroeconomic backdrop is “tailor made” for owning bitcoin, said Novogratz. With more Americans supporting forms of universal basic income and fiscal spending measures like free college tuition, the US government is likely to keep spending money, while other deficits around the world are likely to grow as well.

“The treasury department and the government is financing everything we want to spend, and that’s happening in countries all over the world. So we had bad deficits before COVID. Now we have deficits that are insane. So as long as that macro backdrop, that political backdrop is giving us a tailwind and the market is being adopted, you’re crazy to get out,” Novogratz said.

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Mike Novogratz compared this bitcoin crash to late 2017, when the market plunged into a ‘winter’ lasting years

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Mike Novogratz is one of the most high-profile bitcoin and crypto investors.

  • Crypto billionaire Mike Novogratz compared the current state of the crypto market to late 2017.
  • At the time, bitcoin plunged into a “winter” lasting years as buyers lost interest following a rally.
  • Novogratz said the proliferation of other coins was overwhelming the crypto market.
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Leading crypto investor Mike Novogratz has compared bitcoin’s dramatic price crash to late 2017, when a boom in interest in digital tokens presaged a market collapse into a “winter” that lasted years.

Novogratz said that the widespread creation and adoption of alternative cryptocurrencies was overwhelming the market and meaning investors’ cash was spread too thin. Investors have recently pumped up bitcoin alternatives like ether, XRP and dogecoin, and turned to new creations like safemoon.

“The proliferation of cryptos is a supply response that overwhelms demand,” he wrote on Twitter. “Same happened in 2017.”

Novogratz said he was confident that “the best projects with utility and community will survive and thrive,” just as bitcoin eventually skyrocketed again in late 2020.

Novogratz is not the first to make the comparison between the current state of the bitcoin market and the situation in late 2017, when a sharp rally to record highs was followed by a collapse in prices.

On Wednesday, bitcoin crashed as much as 30% to $30,000 before rebounding to around $40,000, more than 38% off its April all-time high of close to $65,000.

The drop was triggered by China signalling it would crack down on the use of cryptocurrencies for payments, but the multi-day slide began last week when Elon Musk said Tesla would stop accepting bitcoin as payment for cars due to the network’s huge energy use.

It started a debate in the crypto community about whether this was the start of another bitcoin “winter” – a period in which the price drops sharply and stays low for years.

The last such winter began at the end of 2017, when bitcoin slid from a high of around $20,000 to a low of below $4,000 at the start of 2019.

Novogratz was replying to a tweet from Guggenheim chief investment officer Scott Minerd, who said the crypto market looks like the Tulipmania bubble of 17th-century Netherlands.

“As prices rise, tulip bulbs and #crypto currencies multiply until supply swamps demand,” he said.

Pankaj Balani, chief executive of crypto derivatives exchange Delta, told Insider he also saw parallels with 2017 and the rise of bitcoin alternatives.

He said money has been “rotating” into coins such as ether, XRP, and dogecoin, which is a “typical sign of retail exuberance.”

Bitcoin’s dominant share of the crypto market has been waning steadily since the start of the year, when it accounted for around 70% of total market capitalization. That share has now fallen to just over 40%, based on data from This is around its lowest in two years.

But Balani said the money has been coming from investors chasing quick gains and is not “sticky capital” that will stay in the market when prices start to fall.

Analysts have also compared the $100 billion listing of crypto exchange Coinbase in April to the listing of bitcoin derivatives by CME Group in late 2017, which came just before prices plunged sharply.

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Billionaire Mike Novogratz says the crypto market will continue to consolidate for months to come – but urges investors to hold

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  • Billionaire Mike Novogratz on Wednesday encouraged crypto investors to hold their ground despite a sharp sell-off.
  • The Galaxy CEO posted a two-and-a-half-minute video explaining how volatile price swings are normal.
  • He also encouraged investors to buy during the dip.
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On Wednesday, at the depths of a seven-day sell-off that wiped out nearly 50% of cryptocurrency market valuation, billionaire Mike Novogratz gave investors his advice: “Hold your ground.”

In a two-and-a-half-minute video released by his firm, Galaxy Digital, the founder and CEO said that volatility is normal.

“The market is now going to consolidate for weeks, if not a couple of months, as it rebuilds confidence,” Novogratz said.

He said the “giant liquidation” was a confluence of multiple factors – from the recent lapse of the tax deadline, which qualified some cryptocurrency holdings into long-term capital gains, to Elon Musk “poking the bear” with his comments over bitcoin’s harmful environmental impact.

“We’re not going to put Humpty Dumpty back together again in a week,” said Novogratz. “But I want to stress loud and clear that the underlying progress that’s happening in both the bitcoin ecosystem, Ethereum ecosystem, in much of the crypto ecosystem is full speed ahead.”

The Galaxy chief also stressed that the value of cryptocurrency is the technology that is going to revolutionize how people transmit value to each other – in insurance, in derivatives, in banks.

“The great decentralized revolution is alive and strong. It’s taken a price hit,” Novogratz said. “Crypto suffered these washouts before and always came back strong.”

John Wu – the president of Ava Labs, the team behind altcoin Avalance – was similarly unsurprised by the downturn.

“Generally when there’s a lot of volumes, that’s a sign of people clearing out,” he told Insider. “That’s why I think, there will be some stabilization.”

The market cap for global digital currencies slid as low as $1.35 trillion on Wednesday, down 47% from a recent peak of $2.56 trillion on May 12, according to data from

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100X trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

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Crypto-linked stocks plummet amid massive sell-offs in bitcoin and ethereum

Bitcoin Bubble
  • Bitcoin and ethereum both fell double digits on Wednesday before a recovery in a dark day for the crypto world.
  • Crypto-linked stocks like Coinbase, Riot Blockchain, MicroStrategy, and more all fell in response.
  • The start of the bear market for crypto came after Elon Musk said Tesla would no longer accept bitcoin on May 12.
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Cryptocurrency linked-stocks plummeted on Wednesday amid massive sell-offs in crypto leaders bitcoin and ethereum.

Shares of the cryptocurrency exchange, Coinbase, fell as much as 10%, while shares of cryptocurrency miners like Riot Blockchain and Marathon Digital Holdings were down as much as 17% and 18%, respectively.

Michael Saylor’s Microstrategy, which just “bought the dip” in bitcoin with $10 million at an average price of $43,663 per coin, was down as much as 15% on the day.

Grayscale Bitcoin Trust sank more than 6% on Wednesday as well, and even Tesla saw its stock drop more than 3% on the dark day for cryptocurrency enthusiasts.

Cryptocurrencies as a whole saw roughly 15% wiped off their total market cap on the day, according to data from, as altcoins fell in tandem with crypto leaders bitcoin and ethereum.

All of the top ten cryptocurrencies by market cap, except the stablecoins, fell double digits on Wednesday.

The cryptocurrency bear market began on May 12, when Elon Musk tweeted that Tesla would no longer accept bitcoin as a payment method due to the environmental impact of its computational mining tactic for minting new coins.

Then on Tuesday, the Chinese government reinforced its previous ban on financial institutions and payments companies operating in the cryptocurrency business.

The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China said in a statement that cryptocurrencies “are not supported by real value” and argued speculative trading of cryptocurrencies is “seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”

The historic single-day fall for cryptocurrencies comes just a day after Galaxy Digital’s Mike Novogratz shrugged off the recent crypto-slump.

“It’s easy to get buried in the volatility of the day,” Novogratz said, according to a transcript on Sentieo, a financial-research site. “Elon Musk’s Twitter comments, bitcoin going down 4,000 points, and everyone starts running around like chickens with their head cut off.”

Novogratz said he expects the total value of crypto assets to triple, or even quadruple, to between $6 trillion and $8 trillion in the coming years.

Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100X trade opportunities – and shares 5 under-the-radar tokens he thinks could explode

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Crypto billionaire Mike Novogratz shrugged off the bitcoin slump, defended Elon Musk, and made 3 bold predictions this week

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Galaxy Digital CEO Mike Novogratz.

  • Mike Novogratz dismissed the drop in crypto prices as short-term volatility.
  • The Galaxy Digital CEO took Elon Musk’s bitcoin retreat at face value.
  • Novogratz predicted a greener crypto industry, an ETF launch, and clearer regulations.
  • See more stories on Insider’s business page.

Galaxy Digital CEO Mike Novogratz shrugged off the crypto slump, defended Elon Musk, and made a slew of predictions on an earnings call this week.

“It’s easy to get buried in the volatility of the day,” Novogratz said, according to a transcript on Sentieo, a financial-research site. “Elon Musk’s Twitter comments, bitcoin going down 4,000 points, and everyone starts running around like chickens with their head cut off.”

The billionaire investor said he was taking Musk at his word – that he stopped Tesla accepting bitcoin due to its environmental costs, even though the clean-energy company purchased $1.5 billion worth of the coin earlier this year.

“There’s too much conspiracy-theory stuff going on in the market right now,” Novogratz said, likely referring to claims that Musk purposely manipulated the price of bitcoin with his tweets.

Novogratz also dismissed the ongoing crypto sell-off as near-term volatility, not a permanent decline.

“When you get so much capital flowing into the space, people get too long and then they get scared of something,” he said, adding that it will take years before crypto prices cease to be volatile.

The Galaxy Digital chief made several predictions on the call. He expects Musk’s bitcoin critique to lead the crypto community to embrace clean energy, anticipates a crypto exchange-traded fund (ETF) will be approved in the US within the next year, and expects regulators to clarify the rules around owning and trading crypto in the next six months.

Novogratz suggested those trends could spur more retail and institutional investors to add crypto to their portfolios. He also touted bitcoin as a substitute for gold, the traditional haven asset for investors.

“Gold is the only element on the periodic table that really just gets valued because there’s a social construct that says it’s valued,” he said. “Bitcoin has that space in this universe.”

Moreover, Novogratz described Ethereum as a “web 3.0 bet,” citing the numerous applications it enables. Those include decentralized finance (DeFi), non-fungible tokens (NFTs), stable coins, and central bank digital currencies (CBDCs).

Overall, Novogratz expects the total value of crypto assets will triple, or quadruple, to between $6 trillion and $8 trillion in the coming years.

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Mike Novogratz says bitcoin will be stuck around $45,000 for a while after Elon Musk’s tweets – but says ether is having a moment

Mike Novogratz
Mike Novogratz is a leading figure in the bitcoin investment community.

  • Mike Novogratz said bitcoin will be stuck somewhere between $40,000 and $50,000 for up to six weeks.
  • Bitcoin has tumbled around 30% from record highs after Elon Musk criticized the token’s energy use.
  • Novogratz told Bloomberg that Ethereum’s ether is “having a moment” and has many use cases.
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Billionaire crypto investor Mike Novogratz has predicted bitcoin will be stuck somewhere between $40,000 and $50,000 for four to six weeks after Elon Musk halted Tesla payments in the token and criticized its energy use.

In interviews with Bloomberg, Novogratz also said ether – the Ethereum network’s cryptocurrency – was “having a moment” because decentralized finance applications, stablecoins and non-fungible tokens, or NFTs, were being built on the system.

Novogratz called a $40,000 to $50,000 bitcoin price range fair and said: “I think we are going to consolidate for a while, four to six weeks.” He added bitcoin may be stuck between $40,000 and $55,000 for the “next chapter” before ending the year much higher.

The former hedge fund executive said his crypto investment firm Galaxy Digital was buying bitcoin because it thinks it shouldn’t dip below $42,000, the level that was tested on Monday.

Bitcoin was up around 1% to $45,097 on Tuesday. But it’s still down 30% from the record high of near $65,000 hit in April, after a hint from Musk that Tesla may sell its bitcoin holdings caused a further sharp fall on Monday. Musk later clarified Tesla had not sold any bitcoin, which it bought for $1.5 billion in January.

Although Musk’s actions have angered many figures in the bitcoin community, Novogratz said the Tesla boss’s concerns should be taken at face value.

“We use electricity for things that we think provide a tremendous amount of value. And so I think you’re going to see a response from this industry, like you should see a response from every industry, to say… we should do something to offset our footprints,” he said.

Novogratz said the traditional financial world was become increasingly excited about ether, the token on the Ethereum network.

“ETH is certainly having a moment, and it’s having a moment for good reason,” he told Bloomberg TV.

“Right now, it’s got the triple whammy. It’s got payment coins, i.e. stablecoins, being built on top of it. It’s got DeFi [decentralized finance] being built on top of it, and it has NFTs [non-fungible tokens] being built on top of it. So the three major thrusts of the crypto revolution are being built on top of Ethereum.”

Yet Novogratz would not say whether he thought ether could climb higher, after having risen by around 370% year-to-date to $3,500 on Tuesday. He said it would be “healthy” if ether consolidated where it was.

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Dogecoin continues to defy gravity – getting a fresh boost from Coinbase trading and hype-man Elon Musk

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Coinbase said it would add dogecoin on Thursday.

Dogecoin continued to defy critics – and gravity – on Friday, after major boosts from the world’s biggest cryptocurrency exchange Coinbase and its main hype-man Elon Musk.

Coinbase, which went public in a coming-of-age moment from the crypto world in April, said on Thursday it planned to start offering dogecoin trading on its app in six to eight weeks.

The exchange’s chief financial officer Alesia Haas told CNBC: “We want to offer all assets that meet our listing standards and we hope to be the place where you can come and trade anything that you want to trade.”

It followed moves by trading platforms eToro and Gemini to add dogecoin, fueling the rally earlier in May and showed the growing acceptance of the joke cryptocurrency.

But it was Musk’s latest tweet that powered the newest rebound in dogecoin, which had slipped considerably from all-time highs of above $0.70.

Musk has halted Tesla payments with bitcoin but has said he is looking for more eco-friendly alternatives. He tweeted on Thursday night: “Working with Doge devs to improve system transaction efficiency. Potentially promising.” Dogecoin promptly soared and was up 33% to $0.53139 on Friday morning.

Dogecoin’s rally earlier in May captivated retail traders and unnerved many traditional investors, who saw it as a sign of irrational behaviour spurred on by huge amounts of stimulus from governments and central banks.

Many bitcoin enthusiasts quickly became tired of the joke token stealing the crypto headlines.

Barry Silbert, founder and chief executive of the company that owns Grayscale, the world’s biggest crypto fund manager, announced his company was betting against the token and tweeted: “Okay $DOGE peeps, it’s been fun. Welcome to crypto! But the time has come for you to convert your DOGE to BTC.”

Billionaire investor-turned-crypto-evangelist Mike Novogratz admitted he had misunderstood dogecoin’s appeal. But he nonetheless told Bloomberg TV he thought it’s “very dangerous to be invested” and that it was a “retail frenzy” with no institutional backing.

Analysts have consistently warned dogecoin is a purely speculative asset, and is even more risky than the already highly volatile bitcoin.

But predictions that dogecoin will suddenly crash have so far been wide of the mark, with the token continuing to draw life from celebrity buzz and online meme culture.

However, there are plenty of obstacles ahead for dogecoin and the cryptocurrency world as a whole. Not least Musk himself, who is liable to sudden changes of heart when it comes to his enthusiasms.

Nic Carter, founding partner of blockchain investment firm Castle Island Ventures, was scathing about Musk’s claim to be working with dogecoin developers, suggesting they don’t exist.

He tweeted a picture of a man talking to a brick wall, captioned: “Elon working with the doge devs.”

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Crypto bulls challenge Elon Musk’s environmental concerns on bitcoin – but billionaire Mike Novogratz takes a softer stance

Elon Musk
Tesla CEO, Elon Musk.

The crypto community was swift to reject Elon Musk’s decision late on Wednesday to halt payment in bitcoin for Tesla vehicles due to environmental concerns, suggesting that renewable energy is largely used to mine the popular cryptocurrency.

“We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk said in a tweet Wednesday.

Here’s how some bitcoin bulls reacted to Musk’s announcement:

“Ironic because no incremental energy is used in a #bitcoin transaction. The energy is used to secure the crypto-asset network, and the net impact on fossil fuel consumption over time will be negative, all things considered.” – MicroStrategy CEO Michael Saylor.

“Elon probably did not research how much energy is required to run other (non crypto) currencies that Tesla accepts.” – Binance CEO Changpeng Zhao.

“Elon … you realize that 75% of miners use renewable energy, right? This energy story has been debunked over and over again.” – Morgan Creek Digital co-founder Anthony Pompliano.

“When Elon realizes that bitcoin mining is actually pushing the renewable energy industry forward, he will refresh position and #bitcoin will moon.” – co-founder and president at crypto exchange Gemini Cameron Winklevoss.

“FWIW, Bitcoin mining is a massive subsidy for renewable energy.” – co-founder and CEO at Gemini Tyler Winklevoss.

“We at will continue to accept BTC/Eth/Doge because we know that replacing gold as a store of value will help the environment and shrinking big bank and coin usage will benefit society and the environment.” – Dallas Mavericks owner and investor Mark Cuban.

Novogratz and El-Erian were less at odds with Musk:

“My take on @elonmusk is to take him at his word. He cares about the environment and he is using his considerable influence to push BTC mining towards a greener future. Lots of companies in the space have already been working on this. Stay tuned. And buy $BTC.” – Galaxy Digital CEO Mike Novogratz.

“This unexpected development has placed pressure on #Bitcoin. @elonmusk and @Tesla were front runners in the process of private sector adoption of the #crypto #currency, opening the way for others to follow. The reasons for this apparent U-turn are not yet clear.” – Allianz chief economist and president of Queens’ College, Cambridge University Mohamed El-Erian.

Musk appears to have changed his stance

The self-proclaimed “Technoking” had only recently agreed with Twitter boss Jack Dorsey by saying bitcoin “incentivizes” renewable energy. Dorsey’s Square payments company and Cathie Wood’s Ark Invest asset management firm had collaborated on research that suggested bitcoin mining isn’t environmentally-damaging.

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He now says Tesla will look at using other cryptocurrencies that take up less than 1% of bitcoin’s energy use for transactions.

Bitcoin dropped as much as 15% at one point following Musk’s tweet to trade around $46,350, but recovered to around $50,850 as of 3:45 a.m. ET on Thursday.

“In some capacity, distancing the brand from bitcoin could win some ESG love,” Chris Weston, head of research at Pepperstone Financial, said.

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