Surging institutional interest in Ethereum may lead to a supply shock and set the stage for Ether to surpass Bitcoin over the next six months, according to Galaxy Digital CEO Michael Novogratz.
“There’s not a lot of supply of ETH, so I think it has a good chance to outperform Bitcoin in the next three to six months,” Novogratz said in an interview with CNBC on Thursday.
Ether is “bound to at least test” the $4,000 mark
“If ETH breaks above $4,000, it enters price discovery,” he said, noting that this level marks an estimated 8.5% increase from its current price of $3,618, according to Nansen.
“We feel almost destined to at least test the $4,000 ceiling a few times,” Novogratz said.
He also highlighted Ethereum’s “really powerful” narrative, pointing to significant recent purchases by major firms. Sharplink Gaming and BitMine Immersion Technologies have both acquired substantial amounts of ETH, signaling growing institutional interest.
As of Thursday, BitMine reported holding 566,776 ETH (worth around $2.03 billion), while Sharplink owns 360,807 ETH (approximately $1.29 billion).
In addition, Ether Machine, another Ethereum-focused company, is preparing to go public on the Nasdaq under the ticker symbol “ETHM.” The firm plans to launch with more than 400,000 ETH under management, valued at over $1.5 billion.
Novogratz believes the buying momentum isn’t slowing anytime soon.
“They’re raising capital every day and buying Ether,” he said.
Adding to the bullish outlook, BitMEX co-founder Arthur Hayes predicted earlier this week that Ether could reach $10,000 by year-end.
Ether is already gaining ground on Bitcoin in the markets. According to TradingView, Ethereum’s strength relative to Bitcoin has climbed 36.53% over the past 30 days, based on the ETH/BTC ratio.
However, Novogratz still sees more upside for Bitcoin in the near term.
Novogratz says Bitcoin is “on track to move higher.”
Novogratz suggested that Bitcoin could reach $150,000, calling it “a decent target just when I draw funny lines on my charts.”
“It feels like we’re destined to go higher, as long as this narrative holds,” he added.
In a separate market report released Wednesday, Bitfinex analysts projected that if Bitcoin’s current uptrend continues, the next key level would be around $136,000. However, they cautioned that this could represent a local peak.
“This level has historically indicated overextended bullish conditions, often aligning with euphoric sentiment and excessive market positioning,” the analysts noted.
Still, Novogratz acknowledged that macroeconomic shifts could change the outlook. He pointed out that if former President Donald Trump were to reverse course and decide the U.S. doesn’t “need lower rates,” it could impact the bullish momentum.
“That would change my thesis,” he said. “But until that happens, I think we’re heading to 150.”
