fbpx
Money

Novogratz Says Bitcoin Will See Record Highs In 2019 [Video]

Mike Novogratz, the CEO of crypto investment firm Galaxy Digital, predicts that bitcoin will break out of its 2018 doldrums and soar to $20,000 in 2019 — fueled by a spike in institutional investments.

The former Goldman Sachs investment banker says institutional “FOMO” (fear of missing out) will drive the market up over the coming months as cryptocurrency assets gain more mainstream acceptance and traditional finance players take the leap into crypto.

Year-End Bitcoin Price Target: $8,800-$9,000

“Bitcoin has to take out $6,800, and after that we could end the year at $8,800 to 9,000,” Novogratz told Financial News.

“By the end of the first quarter [of 2019], we will take out $10,000. And after that, we will go back to new highs — to $20,000 or more.”

This past summer was a bloodbath for cryptocurrencies, which were hamstrung by a slump the market could not shake since the beginning of the year. It was a humbling anti-climax for bitcoin, whose prices rocketed to almost $20,000 in December 2017.

Despite the recent downswing, the industry scored major street cred after Harvard, Yale, and Stanford University announced that their multi-billion-dollar endowments had invested in crypto.

MIT, the University of North Carolina, and Dartmouth also jumped on the bandwagon, as reported earlier. The combined endowments of the six universities top a staggering $108 billion.

While the universities’ allocation to crypto is reportedly small, analysts say the move will trigger a chain reaction among other big-name institutional investors, such as pension funds.

Because Wall Street and traditional finance giants tend to copy each other, Mike Novogratz and other experts say it’s only a matter of time before the herd mentality takes over, opening the floodgates for other institutional investors to jump into crypto.

“There’s going to be a case of institutional FOMO [fear of missing out], just like there was in retail,” Novogratz predicted.

Regulation Will Legitimize and Boost Crypto

While the crypto ecosystem prides itself on being decentralized and — according to some — unregulated, Novogratz has repeatedly said the market will actually benefit from some formal regulation.

The former hedge fund manager says regulation will push prices up by legitimizing the industry and ridding it of scam artists.

As CCN reported, BlackRock — the world’s largest asset manager — has slowly started embracing crypto, but warned that it would not launch a bitcoin ETF until the industry becomes “legitimate,” said CEO Larry Fink.

“It will ultimately have to be backed by a government,” Fink said. “I don’t sense that any government will allow that unless they have a sense of where that money’s going.”

Despite the recent bear market, Mike Novogratz believes the long-term outlook for crypto is off-the-charts.

Novogratz said an impetus for the upcoming rally is that major institutional players like Goldman Sachs and ICE (Intercontinental Exchange Inc.) — the owner of the New York Stock Exchange — have begun building financial frameworks to facilitate the adoption of crypto.

“It’s a bull market in institutions building the infrastructure needed for real-money investors to start investing in this space,” Novogratz told CNBC in September 2018 (video above). “Three to six months from now, there will be an ‘all-clear’ sign for people — big institutions and pension [funds] — to start investing.”

This story originally appeared in CCN. Image courtesy of Bloomberg/YouTube.

Join The Discussion

NZ Students Heal With Haka After Mosque Attacks
‘Rise Up!’ NZ Students Heal With Haka After Mosque Attacks [Video]
700,000 Sign UK Petition To Stop Brexit And Stay In EU
700,000 Sign UK Petition To Stop Brexit And Stay In EU
New Zealand Begins Funerals For Mosque Shooting Victims
New Zealand Begins Funerals For Mosque Shooting Victims [Video]
Over 1,000 Feared Dead After Cyclone Idai Hits Mozambique
Over 1,000 Feared Dead After Cyclone Idai Hits Mozambique [Video]
Why Africa Continues To Lag Behind In Cryptocurrency Adoption
Why Africa Continues To Lag Behind In Cryptocurrency Adoption
Paris Blockchain Week Summit
Paris Blockchain Week Summit [Podcast]
Where The Funds Go On Crypto Exchanges And OTC Desks
Where The Funds Go On Crypto Exchanges And OTC Desks
Why Most Educated People Fail To Understand Bitcoin
Why Most Educated People Fail To Understand Bitcoin
Social Media Platforms Going Dark Should Be A Wake Up Call
Social Media Platforms Going Dark Should Be A Wake Up Call
Why You Shouldn't Put All Your Focus On Only One Social Media Network
Why You Shouldn’t Put All Your Focus On Only One Social Media Network
The Videos Your Customers Want To See On Social Media
The Videos Your Customers Want To See On Social Media? [Infographic]
5 Ways To “Trick” The Facebook Algorithm For More Engagement
5 Ways To “Trick” The Facebook Algorithm For More Engagement
10 LinkedIn Mistakes You Don't Realize You're Making
10 LinkedIn Mistakes You Don’t Realize You’re Making
Which Social Media Platform Should Your Business Use In 2019
Which Social Media Platform Should Your Business Use In 2019? [Infographic]
Snapchat To Launch Gaming Platform Next Month
Snapchat To Launch Gaming Platform Next Month
How Long Should A YouTube Video Be
How Long Should A YouTube Video Be? [Video]
6 Hottest Cannabis Products In 2019
6 Hottest Cannabis Products In 2019
10 Easy Ways To Be Healthier In 2019
10 Easy Ways To Be Healthier In 2019
9 Questions To Ask Your Network To Help You Find Your Path
9 Questions To Ask Your Network To Help You Find Your Path
What Is Your Therapist Listening For
What Is Your Therapist Listening For?
NZ Students Heal With Haka After Mosque Attacks
‘Rise Up!’ NZ Students Heal With Haka After Mosque Attacks [Video]
700,000 Sign UK Petition To Stop Brexit And Stay In EU
700,000 Sign UK Petition To Stop Brexit And Stay In EU
New Zealand Begins Funerals For Mosque Shooting Victims
New Zealand Begins Funerals For Mosque Shooting Victims [Video]
Apple Announces New iPad Air And iPad Mini
Apple Announces New iPad Air And iPad Mini [Video]