CEO of a crypto investment firm, Galaxy Digital, Mike Novogratz predicts that BTC will Break out of its current price. He believes that the digital currency will soar to $20,000 in 2019 and will be propelled by a rise in institutional investments.
Bitcoin (BTC) Price Today – BTC / USD
FOMO will drive the digital currency market up, says former Goldman Sachs investment banker. The assets are expected to gain more acceptance on the mainstream as traditional finance players join the crypto train.
Predictions for Bitcoin at the end of the year
Novogratz predicts that bitcoin will hit $8,800-$9,000. He told Financial News,
“Bitcoin has to take out $6,800, and after that, we could end the year at $8,800 to 9, 000… 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.”
The past summer was bad for most cryptocurrencies as they were hamstrung by the market slump. The experience was humbling for bitcoin whose prices rose to $20,000 in December last year.
Despite the downswing, the crypto industry gained mainstream acceptance after Yale, Harvard and Stanford University announced that their endowments had invested in digital currencies. Dartmouth, MIT, and the University of North Carolina joined the crypto train.
Even though this allocation to crypto is insignificant, analysts believe that it will trigger a chain reaction. More big name institutions will invest in cryptocurrency.
Also, Novogratz believes that traditional finance and Wall Street giants copy each other, so it is only a matter of time before the herd mentality brings them into crypto.
Regulation will boost and legitimize crypto
While the cryptocurrency ecosystem prides itself on being decentralized and unregulated, Novogratz has repeatedly said the market will require some form of regulation to thrive.
He says regulation will cause a rise in price by legitimizing the industry and getting rid of scam artists.
BlackRock, the largest asset manager in the world, has slowly started embracing cryptocurrency. However, CEO Larry Fink warned that the company won’t launch a bitcoin ETF until the market is legitimate.
“It will ultimately have to be backed by a government… I don’t sense that any government will allow that unless they have a sense of where that money’s going.”
Despite the current bear market, Novogratz believes that the long-term outlook for digital currencies is impressive.
He also said that an impetus for the upcoming rally is that top institutional players such as ICE and Goldman Sachs have started building financial frameworks that will facilitate the adoption of cryptocurrency.
He told CNBC in an interview on September 2018,
“It’s a bull market in institutions building the infrastructure needed for real-money investors to start investing in this space…Three to six months from now, there will be an ‘all-clear’ sign for people — big institutions and pension [funds] — to start investing.”