According to Galaxy CEO Mike Novogratz, Ethereum might surpass Bitcoin in performance in the nearest future due to the growing institutional adoption and overall macroeconomic patterns. He also discussed how Fed policy, inflation and treasury yields are likely to influence crypto prices in the upcoming months.
Institutional Buying and Global Stimulus Fuel Ethereum’s Bullish Momentum
In a recent CNBC interview, Novogratz said Ethereum is gaining momentum as supply tightens and capital inflows increase. The Galaxy CEO said the market had been short on Ethereum, pointing to growing demand from corporate treasuries.
Two major firms are already raising capital to buy ETH, and more are entering the market. He added that Ethereum supply remains tight, which supports a continued price surge. One of those firms is SharpLink Gaming. SharpLink currently holds 360,807 ETH following its latest purchase.
According to Novogratz, this demand is not just retail speculation. He sees real institutional inflows, especially after ETFs brought new money into crypto. He estimated that over $20 billion has entered the space recently. That surge has helped reignite retail interest and pushed the crypto’s price higher.
He said Bitcoin is still strong but more stable, while Ethereum acts more like a growth asset. He personally holds both, but sees more upside in ETH if it breaks out.
Novogratz also commented on macro trends shaping the crypto market. He said the yield curve is steepening and inflation trades are having an effect. The Federal Reserve is under political pressure to cut rates. He believes the White House wants a more dovish Fed chair by May 2026.
He added that the administration is pushing stimulus while China is also taking strong steps to grow its economy. These two forces could keep risk assets like Ethereum rising. He warned that if Donald Trump shifts his tone and calls for tighter policy, the bullish setup may change. But until then, the macro backdrop supports a continued rally.
Tariffs, Inflation, and Capital Inflows Position ETH to Lead Next Crypto Rally
On inflation, Novogratz said new tariffs could raise prices and further push investors toward crypto. He cited strong investor confidence following recent legislation. Capital expenditure is expected to grow, and foreign investment is rising. All of this, he said, could lift GDP and inflation next year.
He predicted Bitcoin could hit $150,000 if the current narrative holds. However, he said Ethereum has a stronger chance to lead that rally in the near term.
Novogratz said the crypto market is still in price discovery mode. He believes investors should stay long on inflation-driven assets like Bitcoin and Ethereum.
He concluded that as institutional adoption grows and macro trends favor risk assets, Ethereum may outperform Bitcoin in the coming months. The Galaxy CEO’s prediction may be happing already as the BlackRock Ethereum ETF hit the $10 billion mark.
With this milestone, it becomes the third fastest to hit the $10 billion mark after Bitcoin ETFs IBIT and FBTC. In the past day, Ethereum price has gained 2.19% and is currently trading at $3,720.
Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
He holds a degree in Geophysics from OAU, Nigeria. When he’s not writing, he loves watching soccer and reading educative journals.
He can be reached via [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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