According to the chief executive officer (CEO) and co-founder of Galaxy Digital, Mike Novogratz it is quite tough for the top cryptocurrency, Bitcoin to break the level of $9,000 by the end of this year. Crypto investor Mike Novogratz is known as one of the most prominent bulls of the emerging asset class but this time he has turned bearish at least for the short term. Novogratz was speaking at the Economist’s Finance Disrupted 2018 conference in Manhattan.
Michael Edward Novogratz is the ex-hedge fund manager of Fortress Investment Group, prior to Fortress Michael was a partner at Goldman Sachs. In 2007 and 2008, Novogratz was ranked a billionaire by the Forbes. He is a longstanding advocate of cryptocurrency. Last year Michael revealed that 20% of his net worth is held in Bitcoin and Ethereum and from this investment he received a profit of $250 million. Because of the higher returns on investment Michael is continually investing in Bitcoin-related projects.
Last year in November, just before the Bitcoins hit an all-time high of $20,000 Mike Novogratz predicted that Bitcoin could easily touch the mark of $40,000 before the end of 2018. He also predicted a $20 trillion of market capitalization for cryptocurrencies. But now in 2018 at the Economist’s Finance Disrupted event he said, to move above the level of $10,000 Bitcoin will need the first two quarters of 2019. He added:
“I don’t think it breaks $9,000 this year,” According to Michael, at this point of time in the bear market, blockchain companies were being forced to sell their cryptocurrency holdings just to fund the burn rate of the crypto industry. He was referring operational and payroll costs.
According to Michael, the crypto market has already touched the bottom and now it is at the level of where it was at before the exponential surge of 2017. Michael said that “markets like to retrace the breakout…. We traced the whole of the bubble,” so now the market is ready to undergo another round of Cambrian level growth. Michael believes that ICO sell-off of ETH is a primary catalyst for the recent bear market but the now the bear market is likely ended and selling pressure has alleviated so now it’s time for the cryptocurrencies to head towards another high. He said that:
Despite the bearish market, it has been a bull market in institutions building the infrastructure needed for real money investors to start investing in this space…… I think that in three to six months from now, there will be an all-clear sign for people big institutions and pension funds to start investing.
According to Novogratz, upcoming custody offering by Goldman Sachs and Microsoft, ICE, Starbucks’ Bakkt will facilitate the influx of investment in the field of blockchain technology and cryptocurrencies.