Galaxy Digital CEO Michael Novogratz believes Ethereum is poised for significant outperformance against Bitcoin over the next three to six months, driven by surging institutional adoption and limited supply availability.
Speaking to CNBC on Thursday, the veteran crypto investor outlined a compelling case for why Ether could be the standout performer in the digital asset space during the remainder of 2025.
Novogratz emphasized that institutional appetite for Ethereum has reached unprecedented levels, creating a supply-demand imbalance that could propel prices substantially higher.
“There’s not a lot of supply of ETH, and so I think ETH probably has a chance to outperform Bitcoin in the next three to six months,” he explained, highlighting how corporate treasury adoption is fundamentally altering market dynamics.
The institutional narrative supporting Ethereum has gained significant momentum with recent high-profile corporate purchases. BitMine Immersion Technologies recently disclosed holdings of 566,776 ETH valued at approximately $2.03 billion, while Sharplink Gaming accumulated 360,807 ETH worth around $1.29 billion.
Adding to this institutional momentum, Ether Machine plans to debut on the Nasdaq under the ticker “ETHM,” launching with over 400,000 ETH worth more than $1.5 billion under management. Novogratz noted that these companies continue raising capital daily specifically to purchase more Ether, suggesting the buying pressure will persist and potentially accelerate.
Price Discovery Mode
From a technical perspective, Novogratz sees Ethereum approaching a critical inflection point that could unlock significant upside potential. With Ether currently trading around $3,618, the Galaxy Digital chief believes the cryptocurrency is “destined to at least knock on the $4,000 ceiling a few times.”
The $4,000 level represents more than just a psychological milestone – Novogratz views it as the gateway to price discovery mode, where Ethereum could experience accelerated gains due to limited resistance levels above.
“If ETH takes out $4,000, it goes into price discovery,” he stated, suggesting that breaking through this threshold could trigger a rapid ascent to much higher valuations.
Market data already supports Novogratz’s optimistic outlook, with Ethereum demonstrating clear relative strength against Bitcoin.
This outperformance coincides with broader analyst optimism, including predictions from BitMEX co-founder Arthur Hayes, who forecasts Ethereum could reach $10,000 by year-end. Such ambitious targets reflect growing confidence in Ethereum’s fundamental value proposition and its expanding role in decentralized finance, smart contracts, and institutional portfolios.
Bitcoin Still Targeting $150,000
While bullish on Ethereum’s near-term prospects, Novogratz maintains his positive outlook for Bitcoin, projecting a target of $150,000 based on technical analysis.
“It feels like we’re destined to go higher, as long as this narrative continues,” he said, though he cautioned that potential policy shifts from the Trump administration regarding interest rates could alter his thesis.
The convergence of institutional adoption, supply constraints, and technical momentum suggests that Ethereum may indeed be positioned for exceptional performance in the coming months with Bitcoin close by.
