How Novogratz’s Galaxy Digital sees Bitcoin halving
The world of cryptocurrency is buzzing with anticipation as the 2024 Bitcoin halving event approaches. This event, spearheaded by billionaire Mike Novogratz’s cryptocurrency group, Galaxy Digital, is set to be unlike any other in Bitcoin’s history.
Bitcoin halving refers to the moment when the reward for mining Bitcoin transactions is cut in half, effectively reducing the rate at which new Bitcoins are created. This event occurs approximately every four years, and it is a mechanism built into the Bitcoin network to control inflation. The 2024 halving is unique because of the market dynamics and the introduction of Bitcoin ETFs, which have created a new demand anchor. As we approach this event, the world watches with bated breath to see how it will shape the future of cryptocurrency.
Innovation in Bitcoin’s history
In previous cycles, Bitcoin would typically surpass its old all-time highs following the halving. However, this pattern has not held true in the current cycle. Bitcoin reached its current all-time high of $73,737 on March 14, 2024, and has since fallen 5.9 percent from its peak, just eight days ahead of the halving event1. The halving event, scheduled for April 19, 2024, will see the number of new coins earned by miners halved from 6.25 BTC to 3.125 BTC. This reduction in supply is expected to create a ripple effect throughout the cryptocurrency market. The previous halving event took place on 11 May, 2020. At that time, Bitcoin was trading at roughly $9,000. It wasn’t until November 2021 that Bitcoin managed to reach the peak of the previous bull cycle, touching $68,789.63.
The market dynamics might be different due to the successful debut of Bitcoin exchange-traded funds (ETFs) in January 2024. According to Coinbase, these products have created “a new anchor for demand”. While the sample of previous halvings is too small to make accurate predictions, many industry leaders are confident that Bitcoin will reach new highs this time around. Ripple CEO Brad Garlinghouse recently predicted that the price of Bitcoin could reach $5 trillion this year.
Founder of Galaxy Digital
Renowned US investor Michael Edward Novogratz, began his career with Goldman Sachs in 1989.
He is the Founder and CEO of Galaxy Digital, a leading digital asset and blockchain technology company. The company is engineering a new economic paradigm and provides access to the growing digital economy. Galaxy Digital serves a diversified client base, including institutions, startups, and qualified individuals. The company’s operations span across various aspects of the digital assets industry, including trading, asset management, and investment banking. Galaxy Digital is known for its commitment to institutionalizing the digital assets and blockchain technology industry.
Novogratz also serves as the Chairman of The Bail Project and has made criminal justice reform a focus of his family’s foundation. He is a board member of Princeton Varsity Club and Jazz Foundation of America. He lived in Asia from 1992 to 1999, taking a salesman position for Goldman in Tokyo in 1992. He was elected partner at Goldman in 1998. Among the positions he held at Goldman were president of Goldman Sachs Latin America and the head of fixed income, currencies, and commodities risk in Asia.
In March 2002, Novogratz joined Fortress Investments. He served as Co-Chief Information Officer of Macro Funds at Fortress Investment Group LLC. He was a principal and director of Fortress Credit Corporation in 2006.
