Rapidly growing institutional interest in Ethereum could trigger a supply shock and position Ether to outperform Bitcoin in the next six months, says Galaxy Digital CEO Michael Novogratz.
“There’s not a lot of supply of ETH, and so I think ETH probably has a chance to outperform Bitcoin in the next three to six months,” Novogratz told CNBC on Thursday.
Ether is “destined to at least knock” on $4,000
“If ETH takes out $4,000, it goes into price discovery,” he said, referring to a level that represents an approximate 8.5% jump from Ether’s (ETH) current price of $3,618, according to Nansen.
“We feel kind of destined to at least knock on the $4,000 ceiling a few times,” he said.
Novogratz also noted Ether’s “really powerful” narrative. He pointed out that two major companies — Sharplink Gaming and BitMine Immersion Technologies — have recently bought large amounts of ETH.
On Thursday, BitMine reported holding 566,776 ETH (approximately $2.03 billion), while Sharplink’s holdings total 360,807 ETH (approximately $1.29 billion).
Meanwhile, another firm, Ether Machine, plans to list on the Nasdaq under the ticker symbol “ETHM,” with over 400,000 ETH worth more than $1.5 billion under management at launch.
Novogratz doesn’t see the buying slowing down.
“They are raising capital every day and buying Ether,” he said. Another analyst, BitMEX co-founder Arthur Hayes, on Tuesday predicted that Ether could hit $10,000 by the end of the year.
On the charts, Ether is already showing signs of outperformance against Bitcoin. The asset’s relative strength against Bitcoin (BTC) has been surging, up 36.53% over the past 30 days, according to TradingView’s ETH/BTC ratio.
However, Novogratz still sees more upside for Bitcoin in the near term.
Novogratz says Bitcoin “destined to go higher”
Novogratz said a Bitcoin price of $150,000 “seems a decent target just when I draw funny lines on my charts.”
“It feels like we’re destined to go higher, as long as this narrative continues,” he added.
Related: Ethereum analysts see ‘further upside’ as ETH price reclaims $3.6K
Meanwhile, Bitfinex analysts said in a market report on Wednesday that if Bitcoin’s uptrend continues, the next major target will be $136,000, though it may signal a local top.
“This level historically represents overextended bullish conditions and often coincides with euphoric market sentiment and peak positioning,” the analysts said.
However, Novogratz warned that if US President Donald Trump were to “change his mind” and decide that the country doesn’t “need lower rates,” that could alter his outlook.
“That would change my thesis, but until that happens, I think we’re heading to 150,” he said.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
