Novogratz Predicts Ethereum Will Crush Bitcoin in 3–6 Months—Here’s Why
Ethereum's gearing up to steal Bitcoin's crown—and Wall Street's favorite crypto bull just placed his bet.
Supply crunch meets institutional frenzy: Why ETH could dominate the next cycle.
Novogratz isn't just bullish—he's betting the house on Ethereum's structural advantages. The math? Simple. With Bitcoin's supply dynamics locked in by halvings, Ethereum's triple whammy of burning mechanisms, staking yields, and ETF demand creates a perfect storm. Institutions want yield, not just digital gold narratives.
Meanwhile, Bitcoin maximalists are too busy counting their Satoshis to notice the DeFi freight train. (Funny how 'sound money' purists ignore 20% APYs.)
Prediction: When the ETH/BTC ratio flips, the FOMO will make 2021's altseason look like a warm-up. Just don't tell the 'number go up' crowd their safe haven asset might underperform a platform that actually, you know, does things.
TLDR
- Ethereum Eyes Breakout as Supply Shrinks, Institutions Fuel Bullish Momentum
- Novogratz Backs Ethereum Surge on Treasury Buys, ETFs, and Macro Tailwinds
- ETH Poised to Outpace Bitcoin on Capital Inflows, Tight Supply, and Policy Boost
- Ethereum Gains Edge with Treasury Support, Limited Supply, and ETF Capital
- Institutions Favor ETH as Growth Asset Amid Bullish Policies and Supply Squeeze
Ethereum may soon outpace Bitcoin in performance as supply shrinks and institutional demand continues rising. Mike Novogratz, CEO of Galaxy Digital, said market conditions increasingly favor Ethereum’s upside. He pointed to macroeconomic support and ongoing capital inflows that could fuel ETH’s next major rally.
Wall Street Billionaire Mike Novogratz: "The narrative of ethereum is really powerful. There's not a lot of supply of $ETH. I think Ethereum outperforms Bitcoin in the next 6 months." pic.twitter.com/nLt6ITi8Lw
— Altcoin Daily (@AltcoinDaily) July 24, 2025
With institutional firms acquiring large quantities of Ethereum, the available supply remains limited. Meanwhile, recent developments in policy and fiscal stimulus have added momentum to Ethereum’s growth trajectory. Novogratz expects this trend to hold steady over the next three to six months.
He indicated that if Ethereum crosses the $4,000 mark, it could trigger strong price discovery. Corporate treasuries are already moving capital into Ethereum, and new funds are entering the market. According to Novogratz, Ethereum’s growth potential appears stronger in the near term compared to Bitcoin.
Ethereum Strengthens on Limited Supply and Treasury Inflows
Ethereum continues to gain ground as tight supply conditions and rising institutional interest drive momentum. Novogratz highlighted that two major treasury-backed companies are now actively raising capital to accumulate Ethereum. SharpLink Gaming alone holds over 360,000 ETH after its latest acquisition.
As more firms enter the market, Ethereum’s supply further compresses, contributing to its recent bullish movement. The Galaxy CEO emphasized that this is not driven by retail activity alone but supported by growing corporate involvement. He also stated that Ethereum is now benefiting from a larger share of total capital inflows.
New ETFs have also helped channel billions into the space, giving Ethereum more exposure to mainstream capital. This surge in inflows has helped spark broader retail activity as confidence rises. Novogratz pointed out that the setup mirrors early-stage bull cycles.
Bitcoin Holds Ground but Faces Slower Growth Prospects
Bitcoin remains a key player in the crypto market, though it may trail Ethereum’s performance in the short term. Novogratz expects bitcoin to potentially reach $150,000 under current economic and policy conditions. He sees Bitcoin as more stable but less reactive to growth signals.
Though some sellers have re-entered the market, Bitcoin’s upward path remains intact for now. The Federal Reserve’s stance on interest rates will influence this momentum. Novogratz believes any policy shift away from lower rates could challenge Bitcoin’s trajectory.
The TRUMP administration’s preference for rate cuts adds to the current bullish outlook for risk assets. However, any change in policy direction could impact market sentiment. Despite this, Novogratz maintains a long position in both Bitcoin and Ethereum.
Macro Trends Continue to Support Crypto Market Growth
Rising inflation expectations and capital expenditures are creating favorable conditions for crypto assets. Novogratz believes upcoming tariffs may further raise inflation, which could enhance demand for decentralized assets like Ethereum and Bitcoin. He also noted that global stimulus is contributing to the bullish sentiment.
China’s economic policies and the U.S. administration’s fiscal push are both stimulating risk asset markets. With pressure mounting for a more dovish Fed by 2026, the broader outlook remains supportive. Novogratz said these conditions could continue to drive capital into crypto.
Legislative developments have also strengthened confidence, encouraging long-term allocations. He explained that Ethereum behaves more like a growth asset, making it attractive in this environment. Overall, Novogratz sees Ethereum as positioned to outperform in the current macro landscape.
