One of the things that is quite uncertain at this point today is the future of cryptocurrencies. 2018 dropped the price of cryptocurrencies in recent months. From trading near $20K in mid-December of last year, Bitcoin price dropped significantly to just around $6,200 in a matter of a few months.
For Mike Novogratz who is a prominent crypto investor and the CEO of Galaxy Investment Partners, though he isn’t as optimistic as before, he expects Bitcoin price to surge around the first half of next year once institutional adoption occurs.
Until today, investors are waiting for institutional investors to commit to the crypto market. Many believe that the US Securities and Exchange Commission approving a Bitcoin ETF could be lead towards more institutional investors joining the crypto market. However, recently, the agency hesitated to approve crypto-related ETFs including the application of the Winklevoss twins. The US SEC cited the possibility of price manipulation in the market as the reason for rejecting Bitcoin ETF applications.
Won’t Even Reach $10K This Year?
Novogratz believes that this year, Bitcoin won’t even touch half of its success last year. He said that “One thing you learn in this process is that everything takes a little longer than you hoped it would. I don’t see us breaking $10,000 by the end of the year”
Novogratz also mentioned about Fidelity Investment’s decision to have a new company that will cater custodian solutions to institutional investors. Novogratz’s company, Galaxy Digital is going to be the first client of Fidelity. He believes that the move by Fidelity will ultimately favor the market.
He mentioned that Fidelity won’t start “seeing institutional flows into purely crypto assets late first quarter or early second quarter”.
Change of Heart
Looking back at the prediction of Novogratz last month, he believed that Bitcoin will jump by 30% by the end of the year. He even mentioned that once it hits the $10,000 range, it is going to get institutional investors to start investing. It is quite different from what he is saying now.
However, he still believes that Bitcoin is a good bet if you are going to keep the crypto as a long-term investment. Novogratz thinks that the market is going to hit $20 trillion valuation. And also, he remains optimistic regarding the ability of the market to surpass the level that it was able to hit last December.
He explained that “The internet bubble was only a US thing. It was rich US people participating. Cryptocurrency is global. there are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania”.
There are a lot of uncertainties in the market today. From regulatory changes from different parts of the globe to problems such as hacking incidences, these are just some of the reasons why cryptocurrencies are currently down today.
Novogratz once claimed that Bitcoin has already bottomed. Is this actually the case or are we still going to see fluctuations that will continue the already bearish market? Is he actually correct that the crypto market is on its way up in the coming months?