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bitcoin

Bitcoin In Consolidation Amid Treasury Companies’ Focus On Altcoins, Says Novogratz

Ash Tiwari
by Ash Tiwari
1 hour ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Speaking during an episode of CNBC’s Squawk Box yesterday, Mike Novogratz, CEO of asset management firm Galaxy Digital, said that Bitcoin (BTC) is currently in a consolidation phase as treasury firms are steadily warming up to the idea of adding altcoins to their balance sheets.

Novogratz Suggests Altcoin Stealing Light From Bitcoin

Bitcoin is currently trading about 7.4% below its all-time high (ATH) of $124,128, recorded on August 14. While the cryptocurrency has surged 5,2% over the past two weeks, its price action remains range-bound, indicating that it could be in a consolidation phase.

Related Reading: US Ethereum ETFs Surpass Weekly Record With $787M Outflow — Details

In a recent TV appearance, Novogratz stated that Bitcoin has been trading sideways for the past month, as treasury companies have focused on accumulating major altcoins lately. However, Novogratz added that BTC may see another upswing toward the end of the year. He said:

Bitcoin’s at a consolidation right now. Partly because you’re seeing a lot of these treasury companies in other coins take their shot.

Indeed, several companies have added altcoins, such as Ethereum, to their balance sheets this year. BitMine Immersion Technologies has emerged as a clear leader, holding more than 2.1 million ETH on its balance sheet, worth almost $9 billion.

cg
Source: Coingecko

Several other companies have joined in. For instance, Ethereum treasury firm ETHZilla recently disclosed that it holds more than 100,000 ETH. Similarly, Nasdaq-listed SharpLink increased its total ETH holdings to over 800,000.

What’s Causing The Pivot To Altcoins?

Multiple reasons could be held responsible for companies choosing ETH over BTC to gain exposure to digital assets. For instance, ETH offers far more use-cases compared to Bitcoin, such as facilitating stablecoin transactions, powering decentralized finance (DeFi), and non-fungible tokens (NFTs).

Related Reading: The Flippening? Ethereum ETFs Attract $4 Billion This Month, While Bitcoin Products Struggle

Recently, Jan van Eck, the CEO of asset management firm VanEck dubbed ETH the “Wall Street token” due to its immense use-cases. He added that Ethereum holds a competitive advantage over its competitors.

Similarly, Jack Ma-linked Yunfeng Financial invested $44 million in ETH. Another firm, the Ether Machine raised $654 million worth of ETH in private financing earlier this month, indicating the rapidly growing trend of ETH-based treasury firms.

Besides ETH, other altcoins like Solana (SOL) are also gaining traction. Earlier this week, design and manufacturing firm Forward Industries stated that it had raised $1.65 billion in cash and stablecoins to launch a SOL-focused treasury strategy.

While altcoins enjoy the limelight, it would be prudent to keep monitoring BTC’s trajectory. A breakout from the current consolidation phase will likely lead to a capital rotation from altcoins to BTC. At press time, BTC trades at $115,050, up 0.4% in the past 24 hours.

bitcoin
Bitcoin trades at $115,050 on the daily chart | Source: BTCUSDT on TradingView.com
Featured image from Unsplash.com, charts from Coingecko and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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