As Bitcoin (BTC-USD) is surging again -- reaching $73,672 this morning -- the rally is mostly due to adoption of the coin through the ETFs on the market, said Galaxy Digital CEO Michael Novogratz.

In a CNBC interview, the Galaxy Digital CEO said that what is contributing to Bitcoin’s (BTC-USD) rally is mostly adoption via ETFs such as Grayscale Bitcoin ETF (GBTC), Bitwise Bitcoin ETF (BITB), ProShares Bitcoin Strategy ETF (BITO), and iShares Bitcoin Trust (IBIT).

Bitcoin, currently at $72,774, is up 45.34% from the previous month, and up 64.58% year-to-date.

“There’s a mindset shift where, all of the sudden, the U.S. has broadly endorsed Bitcoin (BTC-USD),” he said. “It’s been a wild ride of an asset, [and] we’re in price discovery mode right now.”

Novogratz added that Bitcoin (BTC-USD) could reach a target price of $100,000, and that even after a billion dollars of inflows last night into the ETF complex, “as long as that is positive, the price is going to keep griding higher. Once that becomes negative, you’ll see the first real correction.”

Another factor that has affected Bitcoin’s performance in the past is the macro environment, he said. The Federal Reserve’s rate hiking cycle and the federal government’s fiscal spending “has always been a report card on fiscal stewardship,” he said.

But the recent rallies have shown that Bitcoin’s (BTC-USD) momentum is mostly due to supply and demand rather than about liquidity in the market, he said. “We have a political situation where both candidates seem to want to spend a whole lot of money. [Government’s spending trajectory] doesn’t engender a lot of spirit when it comes to wanting fiscal prudence.”

“Things are frothy, funding rates are high, and so in times like this, you always have to be ready for a correction,” he said. “I don't think we [will] go back below $50,000-55,000. I think that's the new floor unless something dramatic happens.”