Ethereum May Outperform Bitcoin Soon, Mike Novogratz Predicts

According to Galaxy CEO Mike Novogratz, Ethereum may surpass Bitcoin in performance soon due to growing institutional adoption and overall macroeconomic trends. He also discussed how Fed policy, inflation, and treasury yields are likely to influence crypto prices in the upcoming months.

Galaxy Digital Ceo Predicts Ethereum Could Soon Dominate

In a CNBC interview, Novogratz said Ethereum is gaining momentum as supply tightens and capital inflows increase. The Galaxy CEO stated that the market had been undersupplied with Ethereum, citing growing demand from corporate treasuries.

Several firms are already raising capital to buy ETH, and more are entering the market. One of the major firms is SharpLink Gaming, which currently holds 360,807 ETH following its latest purchase.

According to Novogratz, this demand is not just retail speculation. He sees real institutional inflows, especially after ETFs brought new money into crypto. He estimated that over $20 billion has entered the space recently. That surge has helped reignite retail interest and pushed the crypto’s price higher.

He said Bitcoin is still strong but more stable, while Ethereum acts more like a growth asset. He personally holds both, but sees more upside in ETH if it breaks out.

Novogratz also commented on macro trends shaping the crypto market. He said the yield curve is steepening and inflation trades are having an effect. The Federal Reserve is under political pressure to cut rates. He believes the White House wants a more dovish Fed chair by May 2026.

He added that the administration is pushing stimulus while China is also taking strong steps to grow its economy. These two forces could keep risk assets like Ethereum rising. He warned that if Donald Trump shifts his tone and calls for tighter policy, the bullish setup may change. But until then, the macro backdrop supports a continued rally.

Factors That Position ETH to Lead Next Crypto Rally

On inflation, Novogratz said new tariffs could raise prices and further push investors toward crypto. He cited strong investor confidence following recent legislation. Capital expenditure is expected to increase, and foreign investment is on the rise. All of this, he said, could lift GDP and inflation next year.

He predicted Bitcoin could hit $150,000 if the current narrative holds. However, he said Ethereum has a stronger chance to lead that rally in the near term. Novogratz stated that the crypto market is still in a phase of price discovery. He believes investors should hold long positions in inflation-driven assets like Bitcoin and Ethereum.

He concluded that as institutional adoption grows and macro trends favor risk assets, Ethereum may outperform Bitcoin in the coming months. The Ethereum ETFs led by BlackRock’s ETHA would undoubtedly also contribute to the outperformance of the largest altcoin by market cap.

With this milestone, it becomes the third fastest to hit the $10 billion mark after Bitcoin ETFs IBIT and FBTC. Over the past day, the Ethereum price has increased by 2.19% and is currently trading at $3,720.