Galaxy CEO Sees Bitcoin Poised for Breakout as Treasury Shift Fuels Altcoin Push
- Galaxy Digital CEO Mike Novogratz says Bitcoin’s sideways movement signals consolidation before a potential breakout.
- Ethereum and Solana treasury accumulation increases, though Bitcoin remains the preferred long-term digital reserve asset.
- BTC’s low inflation rate compared to fiat strengthens its appeal as a hedge against currency depreciation.
Bitcoin has been moving sideways in recent weeks, frustrating some traders who prefer faster action but offering reassurance to those who recognize patterns of consolidation. According to Mike Novogratz, CEO of Galaxy Digital, this period of calm is likely setting the stage for a strong upward move later this year.
Speaking on CNBC’s Squawk Box, he noted that treasury companies have been experimenting with altcoins, particularly Ethereum and Solana, creating short-term competition for BTC’s dominance. Even so, he argued that the market’s broader growth ultimately benefits Bitcoin, which continues to stand as the anchor of digital assets.
Ethereum and Solana Treasury Growth Does Not Erase the Dominance of Bitcoin in Corporate Reserves
The concept of BTC as a treasury reserve asset gained traction after the arrival of spot Bitcoin and Ethereum ETFs in 2024, opening the door for corporations to diversify their balance sheets. Notable firms such as Michael Saylor’s Strategy and Japan-based Metaplanet pushed the narrative by committing substantial portions of their reserves into Bitcoin.
In contrast, others have expanded into Ethereum, with BitMine Immersion Technologies acquiring $200 million in ETH and amassing more than $9 billion in holdings. Novogratz believes the initial wave of new entrants into corporate treasuries may have passed, yet he expects current players to strengthen their positions and grow steadily.
This shift highlights an important reality: BTC still carries unmatched weight in corporate strategy due to its predictability and scarcity. Ethereum and Solana may continue developing strong communities and practical use cases, but they function in a competitive environment. BTC, in contrast, commands broad recognition as digital gold, making it a safer bet for firms aiming to hedge against long-term currency risks.
Bitcoin’s Inflation Advantage and Favorable Macroeconomic Signals Strengthen its Case as a Hedge Asset
BTC recently broke out of the $115,000 range to trade around $116,314 before consolidating at $115,126. This brief spike is in tandem with U.S. stock indices breaking records, driven by increasing anticipation of imminent interest rate cuts from the Federal Reserve.
Moreover, Novogratz stressed that BTC’s inflation rate, currently at 0.8% and 0.9%, stand in stark contrast to the U.S. dollar rate of 2.7%. This disparity solidifies Bitcoin’s reputation as the hedge against depreciation of fiat currency, which makes it more enticing and appealing to investors and institutions alike.
The strength of Bitcoin as an asset goes beyond its current price action. Its structure, built on scarcity and transparent issuance, keeps it distinct from traditional currencies that remain vulnerable to policy shifts and inflationary pressure. For institutions balancing risk and opportunity, Bitcoin offers a long-term anchor at a time when uncertainty still clouds global economic conditions.
Novogratz Sees BTC Leading the Pack While Altcoins Chase Their Share
Novogratz has remained consistent over the years in his confidence that Bitcoin will continue to set new milestones. He once pointed out at the 2019 SALT Conference in Las Vegas, when Bitcoin was at $6,000, that the asset would eventually reach much higher records. His predictions have largely aligned with market cycles, and his recent outlook suggests another major phase is approaching. While Ethereum, Solana, and other blockchains are capturing interest for their innovation, Bitcoin’s simplicity and resilience still make it the central reference point in the market.
For corporate treasuries, the message is clear: altcoins may bring opportunities, but BTC remains the ultimate reserve. With institutions deepening their exposure and macroeconomic conditions aligning, Novogratz believes the market is primed for another chapter where Bitcoin leads, even as altcoins gain parallel momentum.
