Traditional Finance Institutions Appear In The Crypto Space Again

Mike Novogratz, the CEO of Galaxy Investment Partners, has expressed his belief that traditional financial players are increasingly showing interest in the blockchain.

In a recent report by Bloomberg, Novogratz stated that institutional investors are once again investing in the crypto markets, following the significant volatility experienced last year.

Recently, institutions have made a comeback in futures and some stocks. This is significant because they are also returning in structural ways.

A good example of this is PayPal, a traditional financial giant, which has created a stablecoin called PayPalUSD (PYUSD). The aim of PYUSD is to maintain a 1:1 peg with the US dollar.

According to Novogratz, this new stablecoin project by PayPal could potentially become a security that offers interest. This could lead to destabilization of banks.

Novogratz is also confident in the stability of the leading stablecoin by market cap Tether (USDT).

“[There isn’t] any significant risk or any real risk of a big run on Tether, which sometimes just scares the market.”

Galaxy, an investment firm led by Novogratz, specializes in cryptocurrency and blockchain technology investments. Novogratz is a strong supporter of cryptocurrency and has been referred to as a “Bitcoin Bull.”

He firmly believes that cryptocurrency is the way forward for currency and has the capability to transform the financial industry.

A respected trader who predicted the rise of cryptocurrency earlier this year has stated that Bitcoin’s trend has shifted in favor of the bears.

DonAlt, a well-known crypto analyst with over 500,700 followers, believes that the loss of $30,000 as support means that Bitcoin has entered a bearish territory. He suggests that Bitcoin is already in a consistent downward trend.

“The move down has been slow but very consistent, some might call this chop, but I’d call it a downtrend.

(above) $30,000 = good.

$20,000 = good.

$27,000 = might be good enough for a punt.”