The growing interest from institutions in Ethereum has led to a supply crunch, with some suggesting that Ethereum could overtake Bitcoin within the next six months, according to Michael Novogratz, CEO of Galaxy Digital.
“There’s limited ETH supply, so I believe ETH has a real shot at surpassing Bitcoin in the next three to six months,” Novogratz said during a CNBC appearance on Thursday.
Ether is set to hit at least $4,000
“If ETH reaches $4,000, it marks a significant price discovery,” he noted, referring to a potential increase of about 8.5% from its current value of around $3,618, based on data from Nansen.
“We’re likely to hit that $4,000 mark several times,” he added.
Novogratz highlighted the compelling narrative around Ethereum, mentioning that two major firms—Sharplink Gaming and Bitmine Immersion Technologies—have recently acquired substantial quantities of ETH.
Bitmine reportedly holds 566,776 ETH, valued at approximately $2.03 billion, while Sharplink’s holdings are around 360,807 ETH, worth approximately $12.9 billion.
Additionally, another company called Ether Machine plans to go public on Nasdaq with the ticker “ETHM,” launching with around $1.5 billion worth of 400,000 ETH.
Novogratz didn’t observe any slowdown in purchasing. “They are raising capital daily and buying ether,” he stated. Another analyst, Arthur Hayes—co-founder of Bitmex—previously predicted that Ether could reach $10,000 by year’s end.
On the charts, Ether appears to be outperforming Bitcoin lately. Over the past 30 days, its strength relative to Bitcoin has risen by 36.53%, according to TradingView’s ETH/BTC ratio.
However, Novogratz anticipates more gains on Bitcoin soon.
Novogratz believes Bitcoin is on track to be expensive
He suggested that a Bitcoin price of $150,000 is a reasonable target based on current chart patterns.
“As long as this trend continues, we’re likely to see higher prices,” he added.
Meanwhile, Bitfinex analysts noted in a market report that as Bitcoin rises, the next major target could be $136,000, although that might represent a local peak.
“This level usually indicates a highly bullish state and often coincides with peak market sentiment,” the analysts mentioned.
However, Novogratz warned that any changes in policy from the U.S. government could affect his outlook. “If President Trump shifts his position, that might change things,” he said.
“That could alter my forecast, but until then, it seems like we’re headed towards $150,” he concluded.
This article does not provide investment advice. All trading involves risks, and individuals should conduct their own research before making investment decisions.
