Novogratz Says Bitcoin Will See Record Highs in 2019

Novogratz Says Bitcoin Will See Record Highs in 2019

Mike Novogratz Bitcoin price

Mike Novogratz, the CEO of crypto funding agency Galaxy Digital, predicts that bitcoin will escape of its 2018 doldrums and soar to $20,000 in 2019 — fueled by a spike in institutional investments.

The previous Goldman Sachs funding banker says institutional “FOMO” (concern of lacking out) will drive the market up over the approaching months as cryptocurrency belongings acquire extra mainstream acceptance and conventional finance gamers take the leap into crypto.

12 months-Finish Bitcoin Worth Goal: $eight,800-$9,000

“Bitcoin has to take out $6,800, and after that we may finish the yr at $eight,800 to 9,000,” Novogratz instructed Monetary Information.

“By the top of the primary quarter [of 2019], we are going to take out $10,000. And after that, we are going to return to new highs — to $20,000 or extra.”

This previous summer season was a massacre for cryptocurrencies, which have been hamstrung by a hunch the market couldn’t shake because the starting of the yr. It was a humbling anti-climax for bitcoin, whose costs rocketed to virtually $20,000 in December 2017.

Regardless of the current downswing, the trade scored main road cred after Harvard, Yale, and Stanford College introduced that their multi-billion-dollar endowments had invested in crypto. MIT, the College of North Carolina, and Dartmouth additionally jumped on the bandwagon, as CCN has reported. The mixed endowments of the six universities high a staggering $108 billion.

Whereas the schools’ allocation to crypto is reportedly small, analysts say the transfer will set off a sequence response amongst different big-name institutional buyers, corresponding to pension funds.

As a result of Wall Road and conventional finance giants have a tendency to repeat one another, Mike Novogratz and different consultants say it’s solely a matter of time earlier than the herd mentality takes over, opening the floodgates for different institutional buyers to leap into crypto.

“There’s going to be a case of institutional FOMO [fear of missing out], identical to there was in retail,” Novogratz predicted.

Regulation Will Legitimize and Enhance Crypto

Whereas the crypto ecosystem prides itself on being decentralized and — in line with some — unregulated, Novogratz has repeatedly mentioned the market will really profit from some formal regulation.

The previous hedge fund supervisor says regulation will push costs up by legitimizing the trade and ridding it of rip-off artists.

As CCN reported, BlackRock — the world’s largest asset supervisor — has slowly began embracing crypto, however warned that it might not launch a bitcoin ETF till the trade turns into “official,” mentioned CEO Larry Fink.

“It can finally must be backed by a authorities,” Fink mentioned. “I don’t sense that any authorities will permit that except they’ve a way of the place that cash’s going.”

Regardless of the current bear market, Mike Novogratz believes the long-term outlook for crypto is off-the-charts.

Novogratz mentioned an impetus for the upcoming rally is that main institutional gamers like Goldman Sachs and ICE (Intercontinental Alternate Inc.) — the proprietor of the New York Inventory Alternate — have begun constructing monetary frameworks to facilitate the adoption of crypto.

“It’s a bull market in establishments constructing the infrastructure wanted for real-money buyers to start out investing on this area,” Novogratz instructed CNBC in September 2018 (video above). “Three to 6 months from now, there can be an ‘all-clear’ signal for folks — large establishments and pension [funds] — to start out investing.”

Featured Picture from Bloomberg/YouTube

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