Mike Novogratz: AI Could Be 'Biggest Bubble of Our Lifetime,' Bitcoin to Hit $100,000 in 2026
Galaxy Digital CEO Mike Novogratz says Bitcoin has a stronger than falling to $50,000 by year-end.He identified $79,000 to $80,000 as a crucial downside zone, warning that a breakdown could undermine the current bullish momentum.Speaking on the Money Rehab podcast on Oct.13, Novogratz said Bitcoin’s recovery from $60,000 to above $80,000 reflects renewed investor interest.Treasury Secretary Scott Bessent’s comments about Treasury buybacks helped revive Bitcoin’s narrative as a hedge against currency debasement.The renewed momentum has attracted institutional investors, including sovereign wealth funds, while reigniting demand for Bitcoin exchange-traded funds.For ordinary investors, Novogratz recommended allocating 10%–15% of net worth to crypto, with Bitcoin accounting for roughly two-thirds of his own crypto exposure.His other core cryptocurrency holdings include Ethereum , Solana and Hyperliquid .He cautioned against excessive leverage, describing 50x–100x leverage on volatile cryptocurrencies as extremely dangerous.Is Crypto’s Era of 10x Returns Over?Novogratz believes crypto is shifting from speculation toward real-world utility, making sustainable business models essential.He cited Hyperliquid’s trading activity and token buybacks as evidence that platforms with genuine usage can attract capital.The era of routine 10x crypto returns is fading, with greater upside potential in private AI companies and infrastructure.On regulation, he blamed political divisions for the Clarity Act’s failure but hopes SEC andCould AI Trigger the Biggest Financial Bubble?Novogratz believes AI could become the "biggest bubble of our lifetime," surpassing the internet and crypto in economic significance.He expects the rally to continue for several years, warning that a 20%–25% Nasdaq decline followed by a failed recovery could signal a market peak.He urged investors to watch the dollar and Treasury markets, arguing that simultaneous declines in stocks and the dollar could drive stronger demand for Bitcoin.Conversely, a flight to Treasury bills could pressure cryptocurrencies alongside equities.Preview Image: Shutterstock