Galaxy Digital, a crypto investment bank, has sent a note to its clients saying that short rallies, such as we have seen in the crypto market this week, are what happens “before a real rally ensues.”
As we head towards Christmas, the markets are on their fifth day of rebound, and Mike Novogratz from Galaxy thinks they will gain even more momentum. The note headed “Why this rally could end up lasting longer than you think,” concluded that the recent “short” crypto rebound “has more legs” than people realise, pointing to what it believes will be an entry by institutions that may happen in the near future. The note said: “Short rallies are exactly what happens before a real rally ensues. This could set up a more sustained ‘Buy the Dip’ market as we look to the upcoming Institutional launches to give this legs.”
The note also discussed what the investment bank sees as significant upcoming events: the forthcoming launches of Fidelity’s crypto custodial and trading service and digital assets platform Bakkt.
Fidelity announced its launch of a trading service targeting institutional investors in October 2018, and Bakkt, a digital assets platform, which is operating 23 leading global exchanges including the NYSE is due to launch in late January.
Novogratz has previously expressed his optimism about bitcoin, saying he didn’t expect the price to continue falling much further, and it looks like he got this one right.