Everyone's got their theories of what exactly bitcoin is in today's economy — currency, value store or fraud — and NYU professor Scott Galloway is throwing a new one in the mix: A millennial "mistrust index."

"It's basically young people saying they have no faith in our institutions," Galloway told CNBC's "Squawk Alley" Tuesday. "As we lose faith in institutions, it goes up."

Bitcoin saw an unprecedented spike last week, gaining $7,000 in just two days, but has stumbled some since bitcoin futures began trading on official exchanges over the weekend.

Galloway predicted a $1,000 bitcoin spike if embattled Senate candidate Roy Moore wins the Alabama election Tuesday.

"Chaos is great for bitcoin," he said.