A renowned investor and former trader in Goldman Sachs and Fortress, Mike Novogratz, during the New York Bloomberg Summit, told Erik Schatzker, that the cryptocurrency market will soon get to $20 trillion as per market capitalization.
The interview was about the economics of the cryptocurrency market. Schatzker asked Novogratz about the criticism the cryptocurrency market has gotten from skeptics about the movement valuation of the industry and the bubblelike nature of Bitcoin that surfaced early in 2018.
Novogratz said that the bull rally in the cryptoverse in January is similar to the 1996 dotcom bubble. The bubble happened before the 1999 bubble and pushed the market capitalization of dotcom to $6 trillion before it crashed down to $1 trillion.
According to Novogratz, the market will rebound and eventually surpass the all-time-high. The current all-time high for the cryptocurrency market is $900 billion but Novogratz believes that it will be valued at $20 trillion soon. For this to happen, a 20-fold increase from the current all-time high is required.
In his words:
“The cryptocurrency industry is a global revolution which is more than the internet bubble which was just in the United States. It involved just rich people in the US. The cryptocurrency revolution, on the other hand, is global. People from all over the world are participating in the revolution. There is a global market for cryptocurrencies and it will be considered a bubble when the market hits $20 trillion.”
The Road to $20 Trillion
Novogratz prediction isn’t just based on optimism. It is based on real-time indicators, a realistic market overview, and, statistics. He said that the market is driven by retail and individual investors and not just institutional investors. The recent bull rally was promoted by individuals and not institutional investors.
Robust and and stable solutions will be required for the entrance of institutional investors. Since these custodian solutions are being put in place, the institutional investors would be entering into the market soon. When institutional investors begin to invest in the market, the total market capitalization will increase a great deal.