The entire cryptocurrency market may not have totally recovered, but there are indications that there could be yet another bullish run. For instance, you have the institutional investors looking to enter the market. And now, you have crypto businesses finding middle ground with regulators in order to operate smoothly. Recently, Coinbase has been reported to be working not only with the US SEC but also with Japan’s regulators.
If you will ask Mike Novograts who is a billionaire investor and former trader for Goldman Sachs and Fortress, he believes that the cryptocurrency market is about to reach $20 trillion.
Cryptocurrency Wasn’t a Bubble
Many were quick to claim that cryptocurrencies were a bubble waiting to burst. In mid-December, Bitcoin was able to reach $20,000. And after just a few months, it is now just floating around $7,000.
Novograts said that he is expecting the entire crypto market to rebound from the correction that occurred in mid-2018. And in fact, he is expecting the cryptocurrencies to surpass former all-time highs. He even makes a prediction that the entire crypto market is going to reach $20 trillion market valuation.
During the peak of the crypto market, it was able to reach around $900 billion. This means that in order for the prediction to come true, the entire market needs to grow by as much as 20 times.
Novogratz mentioned that “Cryptocurrency is a global revolution. 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 global mania. This will feel like a bubble when we’re at $20 trillion”.
No Participation by Institutional Investors Yet
Though there is already a growing demand on the part of institutional investors, the actual investment coming from their part is still non-existent. Most of the past bullish trends occurred with the help of retail investors and individual traders.
Novogratz admits that it is not going to be easy on the part of the entire crypto industry. “It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of a sudden, the second guy buys. The same FOMO that you saw in retail (will be demonstrated by institutional investors)”
There are many issues that still need to get fixed in the crypto market. From achieving regulatory clarity in the federal level in the US to other countries that are still trying to figure out what to do with the market, these are the challenges that could hasten or slow things down for the crypto market. Will this prediction come true? And if it does come true, when exactly will this be? Currently, it seems that it looks like a long way to go.