Galaxy CEO predicts: Ethereum ( ETH ) will outperform Bitcoin ( BTC )! Institutional inflow + macro favourable information, target price $150,000

Mike Novogratz, founder and CEO of Galaxy Digital, predicted in an interview with CNBC that Ethereum (ETH) is expected to outperform Bitcoin (BTC) in the short term. The core driving factors include: the continued rise of institutional adoption (such as corporate finance departments purchasing ETH), the massive capital inflow brought by ETH Spot ETF (recent crypto market inflows exceeding $20 billion), and macroeconomic trends (inflation pressures, Fed rate cut expectations, fiscal stimulus). Novogratz pointed out that ETH supply is tightening while demand is surging, making it more of a "growth asset." He also forecasted that if the current trend continues, Bitcoin could reach $150,000, but ETH has greater potential to lead in the next crypto bull run. Data shows that BlackRock's ETHA-led ETH Spot ETF has surpassed $10 billion in size, becoming the third fastest ETF product to reach this milestone.

Novogratz: Ethereum is poised for a breakout, institutional demand boosts fundamentals Galaxy Digital CEO Mike Novogratz stated in a recent CNBC interview that Ethereum is gaining strong upward momentum, primarily due to its supply tightening and accelerating capital inflow. Novogratz emphasized that the market is experiencing a "supply shortage" for ETH, driven by the increasing demand from corporate finance departments. For example, the American gaming company SharpLink Gaming recently acquired ETH, bringing its holdings to 360,807 coins. He made it clear that the current demand is not driven by retail speculation, but rather by real institutional capital inflow, especially after the spot ETF introduced new funds into the crypto market. He estimates that over $20 billion has recently flowed into the sector, successfully rekindling retail interest and pushing up coin prices. Novogratz himself holds BTC and ETH, but he believes that if ETH breaks through, its upside potential is greater, as BTC is more "stable" while ETH resembles a "growth asset."

Macroeconomic Variables: Inflation, Fed, and Fiscal Stimulus as Drivers of Encryption Novogratz conducted an in-depth analysis of the macro trends affecting the crypto market:

1. The steepening of the yield curve and inflation trading: Changes in the shape of the yield curve and anti-inflation trading strategies are having an impact.
2. Fed Policy Shift: The Fed is under political pressure to initiate interest rate cuts. Novogratz believes the White House hopes to appoint a more dovish Fed chair before May 2026.
3. US-China Fiscal Stimulus: The US government continues to promote stimulus policies, and China has also taken strong measures to boost the economy. These two forces may jointly support the sustained rise of risk assets including Ether.
4. Potential Risks: He warned that if Trump's policies shift and call for tightening, the current bullish pattern may change. However, before that, the macro backdrop supports the market's continued rise.

Core Drivers: Inflation Expectations and Institutional Adoption Build the Logic for ETH's Rise Novogratz further elaborates on the key factors that ETH may lead the next rise:

• Inflation pressure intensifies: New tariff policies may raise prices, further driving investors to turn to cryptocurrencies for hedging.
• Policy confidence strengthened: Recent legislation (implying clearer crypto regulation) has boosted investor confidence.
• Economic Expansion Expectations: Capital expenditures are expected to increase, and foreign investment is rising. These factors may jointly drive up GDP and inflation levels next year.
• Institutional Adoption Deepens: Enterprises continue to enter the market to allocate ETH, combined with ETF channels, forming strong demand-side support.

Price Prediction: ETH leads in the short term, BTC looks at $150,000 in the long term

• Bitcoin Target: Novogratz predicts that if the current narrative holds, the Bitcoin price could reach $150,000.
• Ethereum's Potential: However, he believes that in the short term, ETH is more likely to lead the crypto market. He pointed out that the current market is still in the "price discovery" phase and advises investors to hold assets driven by inflation, such as Bitcoin and Ethereum, for the long term.
• ETF Booster: He emphasized that the Ethereum Spot ETF led by BlackRock's ETHA will surely help ETH (the largest altcoin by market cap) achieve excess returns. Data shows that the scale of this ETF category has surpassed $10 billion, making it the third fastest ETF product in history to reach this milestone, following the Bitcoin ETFs IBIT and FBTC.

Market Performance and Conclusion As of the time of writing, the price of Ethereum has risen 2.19% in the past 24 hours, currently reported at $3,720.

Novogratz Core Investment Insights:

1. Institution-led demand: The substantial inflow from corporate finance departments purchasing ETH and ETFs constitutes a solid buy support.
2. Strong macro tailwinds: Inflation, dovish Fed expectations, and fiscal stimulus are all beneficial for risk assets like ETH.
3. Attribute differences emerge: ETH, as a "growth asset," is more resilient than "store of value" BTC during a bull run.
4. Short-term leading expectations: The probability of ETH leading in the next phase of the crypto market rebound is higher than that of BTC.
5. Long-term allocation advice: Hold BTC and ETH firmly to hedge against inflation and participate in the long-term growth of the crypto market.

Conclusion: Institutional Involvement and Macroeconomic Tailwinds Dance Together, ETH Welcomes Its Glorious Moment Mike Novogratz's analysis depicts a scenario where ETH is poised for a breakout: institutions are entering the market in large numbers through Spot ETFs and corporate holdings, combined with the macro tailwinds created by inflationary pressures and global easing expectations, forming the core logic for Ethereum to outperform Bitcoin in the short term. The rapid establishment of a $10 billion scale ETH Spot ETF is the most powerful endorsement of institutional demand. Although Bitcoin's long-term target of $150,000 underscores its status, ETH, with its stronger growth attributes and more urgent supply-demand imbalance, is expected to play a leading role in the upcoming crypto market chapter. Investors should closely monitor changes in institutional holdings, ETF fund flows, and key macro data (inflation, Fed statements) to validate this trend.