Michael Novogratz, CEO of Galaxy Digital(NASDAQ: GLXY), described the current environment for Bitcoin (BTC-USD)as a bear market during the company’s recent earnings call. Nevertheless, he reiterated his conviction that Bitcoin remains a long-term, generational investment poised to benefit from macroeconomic tailwinds and broader adoption.
Bitcoin Competes for Speculative Capital
According to Novogratz, Bitcoin is no longer operating in a vacuum. Instead, it is competing for capital with a growing array of speculative assets, including gold, silver, equities, and even sports betting platforms.
“We’re in this transition now where there are other speculative assets that people are playing,” he explained. Even so, he emphasized Bitcoin’s distinct positioning within the financial ecosystem, arguing that its structural value proposition differentiates it from other risk-driven trades.
“We believe that Bitcoin is going to be a generational asset,” Novogratz said, reinforcing his long-term thesis despite near-term volatility.
Reflecting on Volatility and Strategic Timing
Bitcoin’s price swings have been pronounced over the past year, and Novogratz acknowledged that timing the market has proven challenging—even for seasoned participants.
He referenced selling part of his holdings near $130,000 and wishing he had repurchased at $60,000. However, he stressed that Bitcoin plays a symbolic and strategic role within Galaxy Digital’s corporate identity. “It’s hard to be a gold company without owning gold and believing in gold,” he remarked, drawing a parallel between Bitcoin and foundational commodity exposure.
Moreover, he noted that internal morale has remained steady despite price declines. While sharp drawdowns can unsettle teams at crypto-focused firms, Novogratz said Galaxy employees have not wavered in their commitment to the asset’s long-term trajectory.
Macro Catalysts Could Support Recovery
Looking ahead, Novogratz identified potential macroeconomic catalysts that could reignite momentum in digital assets. In particular, he pointed to the possible appointment of Kevin Warsh as Chair of the Federal Reserve. Warsh, previously nominated by President Donald Trump, is widely viewed as dovish on monetary policy.
Novogratz suggested that if Warsh assumes leadership and embraces the view that artificial intelligence could help suppress inflation, rate cuts may follow. Lower interest rates historically provide support for risk assets, including Bitcoin.
“Right now, he’s dovish,” Novogratz said. “He believes that AI is going to crush inflation and that we have inflation heading lower and therefore, rates are too high—he’s going to cut rates.”
Adoption Trends Remain Constructive
Beyond macro factors, Novogratz emphasized structural adoption trends. He cited more than 200 million global Bitcoin holders and noted that institutional participation continues to expand. However, he also argued that portfolio allocations remain relatively small, leaving meaningful upside if Bitcoin secures broader acceptance as a mainstream asset class.
Crypto-Linked Stocks Feel the Pressure
Bitcoin has declined sharply from its all-time high above $126,000 late last year to a low near $60,000 before stabilizing below $70,000. The pullback has weighed on crypto-exposed equities.
Shares of Coinbase, Circle, MicroStrategy, MARA Holdings, and Bit Digital have all experienced notable declines alongside Bitcoin. Meanwhile, Galaxy Digital itself is down roughly 6% year-to-date in 2026.
Long-Term Conviction Intact
Despite persistent volatility and intensified competition for speculative capital, Novogratz’s message was clear: short-term turbulence does not undermine Bitcoin’s structural thesis. In his view, macro shifts, institutional adoption, and technological evolution continue to support the case that Bitcoin will remain a cornerstone asset in the evolving financial landscape.
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