Bitcoin's $30K Rally Powered By Crypto Community, Not Large Institutions: Galaxy Digital CEO Mike Novogratz

Mike Novogratz, CEO of Galaxy Digital, a crypto focused financial services firm, on Tuesday, weighed in on Bitcoin‘s (CRYPTO: BTC) rise above the $30,000-mark.

What Happened: Novogratz said the surge has been largely community-driven rather than influenced by larger institutional investors, in an interview with CNBC.

He also mentioned that hedge funds have been participating in the market trend while large U.S.-based institutions are yet to make significant moves.

See More: Top Indian Apps That Give Bitcoin, NFT Rewards

"The adoption cycle always accelerates when the price is going up. Despite all this regulatory attack, the market is going higher," Novogratz said.

On Bitcoin Rally: Novogratz highlighted that an increase in price usually leads to an acceleration in the adoption cycle, and further explained that manipulation of digital assets such as Bitcoin and Ethereum (CRYPTO: ETH) would be tough due to their huge market capitalization. 

“It’s very hard to manipulate a trillion-dollar market,” he said, noting that smaller coins could be more susceptible to such tactics.

"We’re having a pretty constructive rally,” said Novogratz on crypto.

“The market is pretty certain that Chairman Powell is pretty close to finished. Gold, Bitcoin, Ethereum, those assets that will do well in a slowdown are telling us something.”

Novogratz pointed to Bitcoin’s origins and explained the relevance of the cryptocurrency’s intended purpose in today’s economic climate. Novogratz noted that Bitcoin’s white paper, released during the 2008 Great Financial Crisis, was a product of the widespread “distrust of centralized governments [and] banks.”

Fast forward to present times, Novogratz explained that the current context of recent failures of specialist lenders like Silicon Valley Bank, coupled with the fear of an impending credit crunch, has led to a renewed understanding and appreciation for the original purpose of institutions like Bitcoin in restoring the public’s trust in financial systems

Price Action: At the time of writing, BTC was trading at $29,973 down 0.53% in the last 24 hours, according to Benzinga Pro.

Read More: Bitcoin Holds $30K, Ethereum Drops Before Shapella Upgrade, Dogecoin Down: Analyst Predicts Drop For Top Crypto