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Novogratz said that the arrival of institutional players has taken a little longer than expected. As a result, he cuts down on Bitcoin price prediction to below $10000 by the year-end.
Analysts in the cryptocurrency market just can’t stop talking about especially after its unprecedented rally last year. However, this year of 2018 has been a roller-coaster ride for Bitcoin investors. Moreover, due to the high unpredictability and volatility of Bitcoin, analysts have been shifting their target goal posts frequently.
Just 20 days back from now, Bitcoin bull Mike Novogratz said in a CNBC interview that Bitcoin can reach $10000 by the year-end. However, Novogratz is yet again seen shifting his price targets for Bitcoin. While appearing in a Bloomberg television interview, Novogratz said:
“One thing you learn in this process is that everything takes a little longer than you hoped it would. I don’t don’t see us breaking $10,000 by the end of the year.”
Institutional Push Necessary for Bitcoin Price Rise
One thing where Novogratz remains firm is that he reiterates his view saying institutional entry is key for the Bitcoin price surge. Unless that happens, a sustainable price surge in Bitcoin seems a distant dream. Novogratz says that perhaps we can see a significant institutional money flow in the first half of next year, 2019.
However, it’s not just Novogratz but a general market sentiment built that institutional entry will bring back the lost glory of the crypto market. Since the beginning of 2018, heavy and repeated corrections have hit the crypto market. The overall crypto market has lost 75% of its valuation from its peak of over $800 billion in January 2018. Bitcoin too has lost more than 70% of its price from the peak of above $20000 per BTC token.
However, crypto firms and enthusiasts have still not given their hopes even after facing severe headwinds this year. Companies are working towards developing several institutional products to provide a conducive environment for big institutions to enter the cryptosphere. A number of companies are pushing to introduce Bitcoin exchange-traded-funds (ETFs). Although the SEC has been firm on its stand saying that the market is not mature enough to deal with these products. Furthermore, a number of crypto hacks and loss of millions of dollars of investors funds has forced the regulatory agencies to take a strict stand.
Regulatory Intervention, a Welcome Move?
The decentralization feature of the cryptocurrencies aims to keep centralized institutions and regulators away. However, some analysts have openly gone on supporting regulatory intervention. They believe that regulatory intervention will ensure to keep bad actors away from the crypto market. This will result in creating a more conducive and healthy environment for retail as well as institutional investors.
Additionally, a number of big names from the global financial space like Intercontinental Exchange (ICE), Fidelity Investments, and others are working on different products to promote crypto use and spending in daily life. Some of them are also working on providing safe storage solutions. Overall, a collective effort is made by established as well as new financial players to push forward the growth of the crypto market.
However, in July 2018, Novogratz stated that mass adoption of cryptocurrencies is still five to six years away.