Mike Novogratz Predicts Ethereum Will Hit $4K as Institutions Pile In

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Ethereum is catching serious attention from institutions, and Galaxy Digital CEO Mike Novogratz believes that could tilt the crypto balance. With large firms like BitMine, Sharplink Gaming, and Ether Machine collectively holding over 1.3 million ETH, a potential supply crunch may be in the making. 

Novogratz told CNBC that this surge in institutional interest could be the “secret sauce” pushing Ether past $4,000 in the coming months.

Interestingly, raising the bull vibes, firms like BitMine, Sharplink Gaming, and The Ether Machine now hold billions in ETH in their treasuries. ETH is increasingly seen as a strategic reserve and yield-bearing asset, reshaping its narrative from utility token to digital collateral.

Strong Hands, Limited Supply

With Ethereum trading around $3,618, Novogratz feels ETH is “destined” to knock on the $4,000 door and possibly break into price discovery if it does. He emphasized that there’s not much ETH supply floating around, making it easier for big purchases to move the price. The consistent accumulation by companies, even those preparing to list publicly like Ether Machine, could trigger a squeeze and send prices flying.

ETH Gaining Ground on Bitcoin

Not only is ETH catching up in price, it’s also outperforming Bitcoin on the charts. The ETH/BTC ratio has jumped over 36% in the past month, signaling stronger momentum. While Novogratz remains bullish on Bitcoin long-term, he thinks Ethereum might lead the race shortly, especially with narratives around ETH utility and staking gaining ground.

Bitcoin Still Looks Strong

Despite favoring ETH in the short term, Novogratz isn’t sidelining Bitcoin. He sees $150,000 as a reasonable target for BTC, driven by continued bullish sentiment. Bitfinex analysts echoed that with a $136,000 short-term target, though they caution it could mark a temporary peak. However, Novogratz warned that if U.S. interest rate policy shifts unexpectedly, especially under a Trump-led administration, his bullish outlook might need revisiting.

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ETH $4K, Possible?

Despite past rejections around $4K in 2024, this time, on-chain data stays bullish. Stablecoin reserves in the Ethereum ecosystem have jumped to $131 billion, double the amount from just a few months ago. Total value locked (TVL) also climbed to 22.2M ETH, suggesting growing DeFi activity. Meanwhile, the market cap-to-stablecoin ratio has dropped significantly to 3.4x, suggesting ETH may be undervalued relative to available liquidity.

Ethereum is being loaded up by institutional buyers, and with limited supply, a break above $4K looks likely, says Novogratz. While Bitcoin remains solid, ETH could take the spotlight over the next few months.