Yesterday on CNBC’s Squawk Box, Mike Novogratz, CEO of Galaxy Digital, stated that Bitcoin (BTC) is presently undergoing a period of consolidation as treasury institutions are gradually growing more receptive to the notion of incorporating altcoins within their financial holdings.
Novogratz Suggests Altcoin Stealing Light From Bitcoin
Currently, Bitcoin is approximately 7.4% lower than its peak record of $124,128, which was set on August 14th. Despite a 5.2% increase over the past fortnight, the cryptocurrency’s price fluctuations suggest it might be in a holding pattern, hinting at a consolidation period.
During a recent television interview, Novogratz noted that Bitcoin has remained stable over the past month, with a focus by treasury firms on acquiring significant amounts of other cryptocurrencies. Nevertheless, he anticipates a potential resurgence for Bitcoin later this year. In his words, “Bitcoin may experience another uptrend before the end of the year.
Currently, Bitcoin is experiencing a period of stability or accumulation, partly due to an increase in treasury companies diversifying their investments into various cryptocurrencies.
It’s true that many businesses have incorporated altcoins like Ethereum into their financial records this year. Notably, BitMine Immersion Technologies stands out with over 2.1 million Ether on its books, equating to a staggering value of around $9 billion.
Other companies have also jumped on board, such as Ethereum treasury firm ETHZilla, which announced recently that it holds more than 100,000 ETH. Likewise, SharpLink, a Nasdaq-listed company, has increased its holdings of ETH to over 800,000.
What’s Causing The Pivot To Altcoins?
There are several possible explanations for why businesses might opt for Ethereum instead of Bitcoin when seeking to invest in digital assets. For example, Ethereum has a much wider range of applications compared to Bitcoin, including the ability to handle stablecoin transactions, drive decentralized finance (DeFi), and support non-fungible tokens (NFTs).
More recently, Jan van Eck, head of asset management company VanEck, referred to ETH as the “token of Wall Street” due to its extensive applications. He also emphasized that Ethereum maintains a significant edge over its rivals.
In a similar vein, financial institution associated with Jack Ma, Yunfeng Financial, recently invested 44 million dollars in Ether (ETH). Moreover, the company known as Ether Machine was able to secure $654 million in private funding for ETH earlier this month. This demonstrates the increasing popularity of treasury firms that are built around Ethereum.
Apart from Ethereum, other digital currencies such as Solana (SOL) are also experiencing growth. This week, design and production company Forward Industries announced they had amassed $1.65 billion in cash and stablecoins to implement a strategic approach centered around Solana.
Instead of focusing solely on altcoins, it’s wise to continue tracking Bitcoin’s movement as a potential breakout from its current phase of stability could cause a shift in investments from altcoins towards Bitcoin. At this moment, Bitcoin is trading at $115,050, marking an increase of 0.4% over the past day.
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2025-09-13 10:32