Bitcoin to touch $10,000 by the end of 2018, says bullish Mike Novogratz
While cryptocurrencies continue to take the downward slope in 2018 after witnessing the intoxicating highs of 2017, there are many in the crypto world who still believe that cryptocurrencies, especially Bitcoin will gain some late momentum by this year-end.
Billionaire Mike Novogratz of Galaxy Investment Partners is one such person who believes that Bitcoin (BTC) will have a 30% rally by December 2018, which means the current price of $6,700 would jump to $8,700.
The backer of EOS (EOS) and former Wall Street hedge fund manager made this latest upbeat prediction on Friday in a CNBC “Fast Money” interview.
Novogratz said that cryptocurrencies have bottomed in prices and that most of the selling have concluded. That means valuations have nowhere to go but up. “More importantly, we’re seeing institutions slowly getting into the space …You’re seeing lots of activity in the private markets.”
“Bitcoin will outperform for a while because many institutions consider Bitcoin as a safe store of value and will prefer it over speculative altcoins,” he added.
During the interview, he stressed the point that it is very much possible for Bitcoin to reach $8,800 to $10,000 range by the end of this year. Over the last three days, the crypto market has added $25 billion to its valuation, led by Ripple which saw a jaw-dropping rally over the past three days. XRP moved from a weekly low of $0.27 to a multi-month high of $0.7 within a span of a short 72 hours,
Wider adoption of Bitcoin will lead the revival
Once Bitcoin surpasses major resistance levels at $6,800, $8,800, and $10,000, Novogratz stated that institutions will enter the market and that would lead to an upward and bullish trend. He said that legacy financial institutions like Goldman Sachs and others are busy doing the groundwork that will facilitate the influx of investment in the near future.
“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 the sudden, the second guy buys. The same FOMO that you saw in retail will be demonstrated by institutional investors,” explained Novogratz.
“It’s also 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,” he added.
Not the only one
It seems Novogratz is not the only one who seems to be optimistic about future of cryptocurrencies amidst all the gloom. Earlier this week, Tim Draper, a well-known American venture capitalist, and crypto proponent predicted that the world’s top cryptocurrency Bitcoin could hit $250,000 by the year 2022. In an interview with TheStreet, Draper didn’t hold back on forecasting a major bullish trend that could push Bitcoin over 12 times its record high level of nearly $20,000, achieved late last year.
In another development this week, a renowned Bitcoin enthusiast and economics researcher Jeffrey Tucker warned the crypto-industry to be prepared for market fluctuation and not be complacent during such instability.
“It’s a technology that grows strong when under attack. It has experienced blows, but it only grows stronger and better,” he said.
Tucker has long been an advocate of cryptocurrencies and is known for buying Bitcoin in its initial stages for a meager price of $14.
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