During a recent CNBC interview, Galaxy Digital CEO Mike Novogratz took note of growing cryptocurrency adoption.

While states are willing to collect taxes in crypto, and sovereign wealth funds are getting involved, the billionaire believes that the industry is still early in its adoption cycle.

Speaking of Bitcoin’s price performance, Novogratz says that he is now more optimistic about the state of the market than he was seven weeks ago. As reported by U.Today, Novogratz predicted that Bitcoin would struggle to recover in early 2022 due to the Federal Reserve’s quantitative tightening policy.

Earlier today, the Bitcoin price reached a yearly high of $48,128 on the Bitstamp exchange, recovering roughly 46% from Jan. 24. As reported by U.Today, Novogratz recently predicted that Bitcoin would eventually hit $500,000 in five years.

No miracles

Speaking of recent developments on the regulatory front, Novogratz also claims that Treasury Secretary Janet Yellen has become “much more friendly” to crypto.

As reported by U.Today, the Galaxy Digital head recently described President Joe Biden’s executive order as “welcomed engagement.” This progress is not “magic,” the crypto mogul says. He claims that he is getting calls from senators who are willing to dive deeper into crypto in order to figure out how it should be regulated. The billionaire is willing to continue working with the administration to make the crypto industry flourish.

He expects the Democrats, who are typically more hawkish on crypto, to take a softer stance on the issue now that digital assets are becoming increasingly popular with their voters. However, some members of the party’s progressive wing, such as Massachusetts Senator Elizabeth Warren, remain staunchly anti-crypto.