Billionaire Entrepreneur Mike Novogratz Talks About Struggling Altcoin: "Incredibly Bearish"

Galaxy Digital founder and CEO Mike Novogratz described ETH's continued lag behind competitors like Bitcoin and Solana as "incredibly bearish," expressing concerns about the current sensitivity surrounding Ethereum.

Despite being a long-term supporter of Ethereum, Novogratz pointed out that the coin has underperformed compared to its peers. In a recent interview, he attributed this weakness to the (SEC) regulatory review by the U.S. Securities and Exchange Commission.

Novogratz, referring to former SEC Chairman Gary Gensler's actions against organizations related to Ethereum, stated: "I think the main reason for its underperformance is Gensler's targeting of ETH, suing ConsenSys, and questioning whether it is a security."

Last April, Consensys sued the SEC for classifying ETH as a security. However, later in the year, the SEC further shaped the market's perception by approving the launch of spot ETH ETFs.

Bitcoin (BTC) and Solana (SOL) recently reached all-time high levels in the midst of the upward cycle, while Ethereum's price trajectory has been inconsistent since mid-December.

Novogratz also commented on the emerging investment trend for Ethereum. Unlike Bitcoin, which has received more attention in the media following former President Donald Trump's speech on Bitcoin in 2024, Ethereum's primary investment thesis may have changed. Novogratz said, 'Currently, most of Ethereum's market value is a store of value, but what attracts people there is the trend that it will be Web3,' and added, 'The truth for all crypto ecosystems is that the trend brings excitement and excitement generates value.'

Another factor affecting Ethereum is the uncertainty surrounding the Ethereum Foundation. Novogratz acknowledged the 'FUD' fear, uncertainty, and doubt surrounding Ethereum co-founder Vitalik Buterin and the foundation itself: 'Vitalik, the ETH Foundation, these are a bit of FUD. People are looking for excuses. The foundation should continue on the right path, be a research organization, and organizations like Consensys or other relevant organizations should be advocates.'