“Fear Is Killing Bitcoin Adoption”: Galaxy Digital’s Mike Novogratz Sounds Alarm

Bitcoin is facing testing times with changing global market conditions. It is having a tough time attracting new investors amid geopolitical tensions, according to Galaxy Digital CEO Mike Novogratz. In an interview with CNBC, Novogratz shed light on how recent geopolitical tensions and economic uncertainty are pushing investors towards safer assets. He claimed that investors are trading in stores of value like gold, as the Bitcoin adoption rate has dipped. 

Tariff Shocks and Market Fear Keep Bitcoin Buyers on the Sidelines

“The surge in tariffs took many by surprise and has sent shockwaves through the global economy,” Novogratz said. He highlighted that U.S. President Donald Trump’s tariffs may have sparked “major uncertainty” across asset classes. This situation has instigated a “risk-off mindset” among investors. This led them to retreat from risky assets like Bitcoin. “We’ve seen very few new Bitcoin buyers,” Novogratz said. He further noted that despite Bitcoin being dubbed a “hedge against inflation, “ fear suppresses Bitcoin adoption. 

While the Bitcoin price has shown commendable resilience compared to equities, it has failed to outperform gold. Investors have chosen to flock toward gold in times of heightened investor anxiety. “Bitcoin and gold are report cards on financial stewardship,” Novogratz remarked. He pointed out that the rising bullion prices and increased investments in gold by foreign central banks are signs of declining trust in the economy. 

‘Market Fears on the Rise, Bitcoin Adoption Will Be Slow’

The Galaxy Digital CEO warned that the macroeconomic environment is shifting toward conditions resembling emerging markets, with higher interest rates and a weaker dollar. “The markets are saying you’re going too fast and the strategy’s not going to work,” he said, referencing bond market volatility and the enormous costs of U.S. debt servicing. The recent tariff hike, he added, “is unlikely to reduce the fiscal deficit,” compounding market fears meaningfully.

Bitcoin is doing what it’s supposed to. Acting as a report card on financial stewardship.

In times of uncertainty, it reflects both the flight to safety and a long-term bet on a new financial system. But as a young asset, it still needs calm to grow. Adoption doesn’t thrive in…

— Mike Novogratz (@novogratz) April 16, 2025

 

This broader economic reset means the Bitcoin adoption phase may stall until conditions stabilize. “When institutions face this kind of uncertainty, they tend to retreat,” Novogratz explained. For now, Bitcoin’s path to becoming a safe haven faces significant obstacles as investors seek stability elsewhere. Given this latest development, we might soon see a Bitcoin rally if the market stabilizes and investors return to the crypto market. Let’s take a look at Bitcoin’s latest price action and try to understand where the market stands as of now. 

Bitcoin Price Analysis: Bitcoin Struggles Below $85K

Yesterday, Bitcoin began proceedings at $83,600. It progressed downward on the trend from the previous day, eventually finding support at $83,1000. With the RSI indicating oversold conditions, an uptrend commenced. However, the ascent met rejection soon at $83,930. This rejection led to a death cross at 3:20 UTC, with Bitcoin slowly declining to $83,260. The price attempted to rise, but a reversal led it to the support level again. However, in the coming two hours, Bitcoin continued to test resistance constantly until an upward breakout was observed at noon. 

A corrective phase followed right after, taking the Bitcoin price to $83,700 at 13:50. Around the same time, a significant golden cross formed as Bitcoin scaled up to $85,350 by 17:00 UTC. Half an hour later, the reversal occurred with a massive death cross, as Bitcoin plunged deep, going to $83,200. With the market again oversold, the trend reversal came in, and Bitcoin advanced to face rejection at $84,650. Since then, Bitcoin has stabilized around the $84,000 mark. 

Bitcoin Price Prediction: Will Bitcoin Touch $85k Today?

Given the latest analysis by Novogratz, which claims that there have been no new Bitcoin buyers, the buying pressure has taken a hit. It can also be seen in Bitcoin’s price performance as it struggles against the $85K mark. If it can form a trading range around the current $84,000 mark, it could be well placed to test the resistance at $84,650. But, it is worth noting that the RSI was nearing the overbought zone, which means that Bitcoin may soon face a correction.