Michael Novogratz doesn’t see Bitcoin breaking out of its current slump.
Granted, at one time, he was quite bullish.
“Ten percent of my net worth is in this space. It’s the ‘best investment of my life,’” he once said, as quoted by Coin Telegraph. “The Nasdaq got to $5.4 trillion in 1999, why couldn’t it be as big? There’s so much human capital and real money being poured into the space and we’re at a takeoff point.”
Novogratz even called for $40,000 Bitcoin prices in 2018
But now, he’s changing his tune. “I don’t think it breaks $9,000 this year,” he told the Economist Finance Disrupted Conference in New York.
In fact, it may take the first two quarters of 2019 for it to move above $10,000.
Novogratz is not entirely bearish, though
In fact, he recently called the bottom in Bitcoin prices.
Weeks ago, he noted the Bloomberg Galaxy Crypto index, which measures the performance of the largest digital currencies traded in dollars, “retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble.”
His analysis suggests another rally could be on the way.
In addition, meaningful institutional investors’ money will make its way to cryptocurrencies by 2019. We could even see a return of the same “FOMO,” or “fear of missing out,” that pervaded as bitcoin neared $20,000 last year, notes CNBC.
Other Reasons to Remain Bullish on Bitcoin
Binance CEO Changpeng Zhao believes cryptocurrency still has plenty of room to grow by more than 1,000%. “Crypto will absolutely grow 1000x and more!’ Just reaching USD market cap will give it close to 1000x, (that’s just one currency with severely restricted use case), and the derivatives market is so much bigger,” he noted on Twitter.
Tom Lee of Fundstrat had famously prophecized that BTC “could end the year explosively higher.” In fact, he says Bitcoin could rally as high as $25,000.
Banks such as Citigroup, Goldman Sachs and Citigroup are working to offer cryptocurrency products. The NASDAQ is about to hand institutional investors analytical tools for trading hundreds of crypto assets.
And the Intercontinental Exchange (ICE) intends to form a new platform, called Bakkt. Its intention is to create an “open and regulated, global ecosystem for digital assets.”
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