Mike Novogratz says gold and bitcoin will both surge higher as long as the government 'liquidity pump' stays turned on
- The billionaire investor Mike Novogratz said bitcoin and gold would continue to rise because of a global "liquidity pump."
- Federal stimulus will add liquidity, as both Republicans and Democrats have proposed plans worth trillions of dollars, he said.
- Novogratz estimated that about 20% of his net worth was in bitcoin, adding that he wanted it to go a lot higher.
- Watch gold trade on Markets Insider here.
- Watch bitcoin trade on Markets Insider here.
Michael Novogratz, Galaxy Digital's founder, CEO, and chairman, said on Tuesday that bitcoin would be at $14,000 in the next three months and could easily reach $20,000 by the end of the year. He predicted that gold would continue to rise too, as long as the government's "liquidity pump" stays turned on.
"Great bubbles usually end with policy moves," the investor told CNBC. "It doesn't look like the Fed is going to raise rates … The liquidity story isn't going to go away. We're going to get a big stimulus."
Gold futures rose 2.2% on Tuesday, to as high as $1,974.40 an ounce. Bitcoin climbed 6%, to as high as $11,379 per coin, trading near its highest level in a year.
Novogratz added that retail investors who had focused on tech stocks might now be flocking to bitcoin and gold.
"Bitcoin still has a lot of retail interest in it," he said. "A lot of that retail interest shifted to the story stocks, to the tech stocks, because they were just more fun ... Yesterday you saw a lot of money shift back over to gold and bitcoin."
Novogratz said that he was beginning to see institutional investors move into bitcoin but that they faced a learning curve unlike they might encounter in gold investing.
"Gold has been around for 3,000 years. It's pretty easy to buy," he said. "There's an adoption game in bitcoin that you don't have in gold. But I like them both."
The investor said his core positions had been in gold, bitcoin, and silver, and "those are working great." Novogratz estimated that about 20% of his net worth was in bitcoin, adding that he wanted to see the cryptocurrency go much higher. He said gold was more of a 5% position for him.