Galaxy Digital CEO Michael Novogratz said Tuesday that the current rally among cryptocurrencies is not built on an influx of new money but, rather, comes from long-standing crypto enthusiasts moving back into the market after its sharp fall last year. "This crypto rally has been built on the backs of the crypto community," Novogratz told CNBC. "It's not been new money ... it's not been pension funds and asset managers coming in. It really was retail driven." Novogratz, who attributes much of Bitcoin's ( BTC-USD ) fall from its 2021 heights above $60K to the Federal Reserve's aggressive raising of interest rates, added that "some new people" are joining the crypto space, leading to "an uptick" in Galaxy Digital's business. That said, Novogratz does not see this as a sign that the "institutional pie has been growing." Rather, the famed crypto investor believes turmoil in crypto space, such as the bankruptcy of major exchange FTX, has funneled many established crypto traders into the remaining institutions. "I kind of think our uptick in business is coming because a lot of our competitors got wiped out," he said. The Galaxy Digital CEO stated that the market is experiencing a "constructive rally" due to a number of factors, including the belief that the Fed is finished or close to finishing hiking rates. Meanwhile, aggressive moves in Hong Kong, Abu Dhabi and Dubai to set up regulatory frameworks have provided increased confidence in crypto, leading to additional money flowing in from the region. When asked about Ethereum ( ETH-USD ), Galaxy Digital's CEO claimed that it has a "vibrant community," making it safer than other altcoins. "I don't see a big sell-off in Ethereum coming," he concluded. Looking at Tuesday's intraday action in crypto space, Bitcoin ( BTC-USD ) climbed 3% to $30.12K while Ethereum ( ETH-USD ) edged up to around $1,900. Meanwhile, crypto-focused ETFs were benefitting from the upswing in Bitcoin prices. Here are Tuesday's intraday performances for some of the highest-profile crypto ETFs: ProShares Bitcoin Strategy ETF ( BITO ) +3% Valkyrie Bitcoin Strategy ETF ( BTF ) +3.3% VanEck Bitcoin Strategy ETF ( XBTF ) +3.3% Invesco Alerian Galaxy Crypto Economy ETF (SATO) +5.7% Global X Blockchain & Bitcoin Strategy ETF ( BITS ) +4.6% Global X Blockchain ETF ( BKCH ) +6.9% VanEck Vectors Digital Transformation ETF ( DAPP ) +8.9% Bitwise Crypto Industry Innovators ETF ( BITQ ) +7.7% . Looking at individual stocks, Marathon Digital ( MARA ) +12% , Riot Blockchain ( RIOT ) +15% , Coinbase ( COIN ) +7% , Bitfarms ( BITF ) +9% , MicroStrategy ( MSTR ) +7% .
$285 Million in Bitcoin Shorts Wiped Out
