Michael Novogratz, a somewhat legendary figure, former macro hedge fund manager at Fortress, current head of Galaxy Investment Partners, has predicted that Bitcoin will jump to $10,000 in next six to ten months.
The expert admitted that he has been investing in Bitcoin and blockchain technology for some time now and predicted Bitcoin’s price increase to $10,000 in next due to strong and enhancing investor interest. At the moment of writing, Bitcoin was down 0.88 percent, to $4836.67, according to CoinMarketCap.
“I can hear the herd coming,” he said during an appearance after market hours Tuesday on CNBC’s “Fast Money.” He named bitcoin to digital gold. “Blockchain will change the way we live,” he said. “This is not going away. I’m pretty confident to say it’s going higher. …It would not surprise if in the next six to 10 months we’re over $10,000.”
He is not the only expert who stays positive about the Bitcoin’s future. The cybersecurity and software pioneer John McAfee wrote in a Twitter post: “Bitcoub’s low of $1,800+ yesterday simply could not be maintained. In the long term Bitcoin moves above $500,000 within three years. Bets?” He added: “I have a doctorate in point-set-topology. It predicts BC at $2,431,013 in 3 years. other math systems – between $1,900,000 and $2,600,00.”
This summer Novogratz predicted that the cryptocurrency market can reach $5 trillion by 2022. “The Nasdaq got to $5.4 trillion in 1999, why couldn’t it be as big? There’s so much human capital and real money being poured into the space and we’re at the takeoff point,” he noted.
Mr. Novogratz underlines the necessity of strict regulatory base within the global cryptocurrency exchange market that can really turn it into a major financial market. As for now, many markets including Japan, China, South Korea, Australia, the Philippines, Singapore and Hong Kong among others have introduced necessary regulation to encourage people use digital currencies.
In September the famous investor unveiled his plans to launch $500M Galaxy Digital Asset Fund which is believed to become the largest, but not the first one – according to data from NEXT, a financial technology analytics company, there are at least 75 such crypto funds in business.
“This is going to be the largest bubble of our lifetimes. Prices are going to get way ahead of where they should be,” he announced. But, in contrast with a majority of frightened investors, who see just volatility, he sees opportunity: “You can make a whole lot of money on the way up, and we plan on it. In a lot of ways, this is a market like any other market. You see the psychology of fear and greed in the charts the same way you’d see it in charts of the Indonesian rupiah or dollar-yen or Treasuries.”
Today, major stimulus for investors to draw into this highly volatile digital environment is first of all cyptocurrencies’ exponential surge in price, and then lack of correlation to traditional investment assets.
Bitcoin, for example, multiplied five times in price this year before dropping in September due to China’s crackdown on digital currencies. While some crypto enthusiasts freaked out, others managed to make money from this quite sticky situation: “I sold at $5,000 or $4980,” – said Michael Novogratz. “Then three weeks later I’m trying to buy it in the low $3,000s. If you’re good at that and you’re a trading junkie, it’s a lot of fun.”