Billionaire investor Michael Novogratz says he earned a “black eye” after shorting Tesla Inc. because the surge in the share price resembles the Bitcoin bubble.

“I got cocky and tried to pick the top of a bubble and I got a black eye,” Novogratz, chief executive officer of Galaxy Digital Holdings Ltd., said during a Bloomberg Television interview in Miami Beach, Florida.

Novogratz said that Tesla, like Bitcoin back in 2017, is no longer a “fundamental story” and is driven now by the compelling narrative and “any bit of good news,” such as Wednesday’s stronger-than-expected quarterly results. As with Bitcoin, Novogratz said he remains a huge fan of Tesla and even owns two cars. He plans to exit the trade soon “without that much pain.”

Novogratz remains bullish on Bitcoin even after it’s 30 per cent gain since the start of the year. He favors that largest cryptocurrency over so-called altcoins, which need to find a “use case” in the next several years, he said.