Coinbase listing has fueled ‘a lot of frenzy’ and ‘that never ends well,’ bitcoin bull Novogratz tells MarketWatch

“In the next week, certainly we could have some volatility because of the excitement around Coinbase,” the former Goldman Sachs GS, +2.34% partner said during the second week of an Investing in Crypto virtual event series hosted by MarketWatch and Barron’s on Wednesday.

“I’ve seen a lot of weird coins like dogecoin and even XRP have huge retail spikes, which means there’s a lot of frenzy right now,” Novogratz said. “That never ends well, and so we’ll probably have a washout at one point,” he said of the broader market.

That said, Novogratz remains bullish on bitcoin and Coinbase on the whole, and said he views the Coinbase IPO as “monumental” for the crypto industry.

Coinbase closed up more than 30% from its $250 reference price on Wednesday, at one point touching a market value above $100 billion. It closed at $328.28, off from its intraday peak at $429.54.

Ahead of the Coinbase listing, bitcoin BTCUSD, +1.33% touched a record near $65,000 and dogecoin’s value surged to a record over 10 cents, representing a more than 20% daily surge for the digital asset that was created as a joke currency back in 2013 and has become a meme in the social-media community.

Meanwhile, XRP coins were up 88% so far this week.