The cryptocurrency market has seen a massive U-Turn, relative to the disastrous few weeks that left the market cap languishing at $104 billion, this week saw a 30 percent increase with the market cap at $132 billion at press time. In the wake of this upheaval crypto-bull, Mike Novogratz’s crypto investment bank Galaxy Digital stated that small-scale rallies like this are a precursor to bigger rallies, in a note to clients on December 20.
Bitcoin [BTC], the top crypto has surged across the $4,000 mark, for the first time since December 4 and has anchored a market upswing, with several coins trading in green. This initial rise could be fuelled even more to a massive upwards momentum, said Galaxy Digital.
“Why this rally could end up lasting longer than you think,” was the title of Galaxy Digital’s notes, wherein they argued that the U-Turn is going to be buoyed by the recent developments in the institutional space.
Galaxy digital points to two key institutional entrances that will be a catalyst to a bullish market. Firstly, Bakkt, the digital asset platform backed by the Intercontinental Exchange (ICE) and the New York Stock Exchange (NYSE), which is set to be launched in January. Secondly, Fidelity’s forthcoming cryptocurrency custody solution, with another investment bank State Street also mulling a custody solution possibility.
“Short rallies are exactly what happens before a real rally ensues. This could set up a more sustained ‘Buy the Dip’ market as we look to the upcoming Institutional launches to give this legs,” reach the note.
Earlier in the week, Galaxy Digital’s founder, Mike Novogratz in an interview with Bloomberg said, Bitcoin would become the “digital store of wealth,” in the near future and that it will usher in a decentralized worldwide computing system, Web 3.0.
Notoriously, Novogratz also compared the November crypto-debacle to a “methadone clinic.” He stated that Bitcoin’s late 2017 rise, which saw a price increase to almost $20,000, “a drug.” He further stated that the “audience is more sober now, the drug is gone” in reference to this year’s bear market with its apex in November.
In November, it was reported that Galaxy Digital was going through a rough patch, with the crypto investment bank seeing losses of $134 million in Q1. The losses were spread across the following divisions, $13.5 million in the trading business, $88.5 million in digital assets, $1.1 million in paper investments and $22.9 million in its principled investing business.