Bitcoin has been trading in a consolidation phase in recent weeks, as corporations and treasury companies increasingly focus on accumulating altcoins, according to Mike Novogratz, CEO of Galaxy Digital. Speaking on CNBC’s Squawk Box, Novogratz emphasized that while Bitcoin remains a key asset in institutional portfolios, its sideways movement reflects the growing interest in alternative cryptocurrencies like Ethereum (ETH) and Solana (SOL).
“Bitcoin’s at a consolidation right now. Partly because you’re seeing a lot of these treasury companies in other coins take their shot,” Novogratz explained, highlighting the trend of corporate adoption and strategic diversification in crypto holdings.
Institutional Altcoin Accumulation Drives Market Momentum
Several high-profile firms have been active in building altcoin treasuries. For instance, blockchain-focused firm BitMine Immersion Technologies has been leading the pack, recently acquiring $200 million worth of Ethereum and increasing its overall ETH holdings to more than $9 billion. These moves are fueling momentum for the altcoin sector while diversifying institutional crypto exposure beyond Bitcoin.
Meanwhile, Nasdaq-listed Forward Industries has started a $1.65 billion treasury strategy focused on Solana, securing cash and stablecoin commitments to strengthen its presence in the Solana ecosystem. According to Novogratz, such initiatives are injecting both capital and energy into the crypto market, benefiting the overall ecosystem.
“Deals like this, led by crypto-native companies Galaxy Digital, Jump Crypto, and Multicoin Capital, are bringing energy into the crypto space,” he said. “Bitcoin is kind of going sideways a little bit, but these altcoin initiatives are creating momentum for the broader market.”
Bitcoin’s Potential for Year-End Surge
While Bitcoin remains in a consolidation phase, Novogratz believes the cryptocurrency could experience a significant surge later this year. Several factors support this outlook, including the potential start of a US Federal Reserve interest rate-cutting cycle. Reduced interest rates historically boost risk-on assets, including cryptocurrencies, which could lead to renewed investor appetite for Bitcoin.
In addition to macroeconomic factors, regulatory developments are helping create a more favorable environment for Bitcoin and other cryptocurrencies. Novogratz noted that positive signals from the Securities and Exchange Commission (SEC), including remarks from SEC Chair Paul Atkins on modernizing securities regulations, are paving the way for increased on-chain market activity.
He also pointed to Nasdaq’s recent filing for a rule change to allow tokenized versions of listed stocks and exchange-traded funds (ETFs). “This blockchain revolution had really just been Bitcoin as a store of value, and stablecoins as cross-border payments,” he said. “What held us back was blockchains being fast enough, safe enough, secure enough, and trusted enough, and more importantly, a regulatory framework that allowed people to experiment. And so now we have both.”
Altcoins Provide Competitive Growth Opportunities
Novogratz emphasized that the growth in altcoins does not diminish Bitcoin’s role but instead complements it. Ethereum, Solana, and other major blockchain networks have their own communities, use cases, and narratives, which allow them to thrive alongside Bitcoin without replacing it.
“Ethereum has its own community, its own narrative, and its own use case. Yes, it will compete against Solana and other blockchains, but it’s not like we’re going to have one blockchain to rule them all,” he said. This decentralized growth model encourages competition while fostering innovation across multiple ecosystems.
Market Outlook: Diversification and Healthy Competition
The broader crypto market is evolving from a narrative-driven phase to one focused on real institutional participation, technological upgrades, and regulatory compliance. Corporations that build diversified treasuries in both Bitcoin and altcoins help stabilize the market while providing liquidity and increased adoption.
Novogratz highlighted that despite healthy competition between firms and ecosystems, the market is unlikely to consolidate around a single dominant blockchain or company, unlike traditional finance. Instead, the crypto landscape is expanding into multiple verticals, including DeFi, staking, and enterprise adoption.
Conclusion: Sideways Now, But Upside Ahead
In summary, Bitcoin’s current consolidation should be viewed in the context of a larger trend of altcoin adoption by treasury companies and institutional investors. While the market may experience short-term sideways movement, macroeconomic tailwinds such as Fed rate cuts, favorable regulations, and increased adoption of tokenized assets suggest a potential year-end surge for Bitcoin.
Altcoins like Ethereum and Solana continue to attract institutional capital, creating energy and liquidity in the market, which could further support Bitcoin’s upward trajectory once momentum shifts. According to Novogratz, the next few months could mark an important phase for crypto, where strategic diversification and regulatory clarity drive the market toward its next major leg upward.
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