The price of bitcoin could touch the $40,000 level by 2020, according to billionaire investor Michael Novogratz.
The founder of US-based Galaxy Investments Partners said in a phone interview with Bloomberg that he sees bitcoin breaching above its 2017 peak of $20,000 in the near-future. He presented the level as a crucial juncture for the cryptocurrency as it sets eyes to almost double its value in the forthcoming months.
“I don’t expect bitcoin to go to $20,000 in the next two weeks. I also don’t expect it towards the middle to the end of the fourth quarter. We will see kind of a period of consolidation,” said Novogratz.
The former hedge fund manager stated that there is a plentiful of factors that could propel bitcoin towards its old highs and beyond. He mentioned technology giant Microsoft, which is currently building an identity management solution atop the Bitcoin blockchain.
Novogratz also mentioned TD Ameritrade, a US brokerage firm, whose child company ErisX lately received regulatory approval to launch bitcoin derivatives products. Excerpts from his statement:
“You can buy bitcoin on your TD Ameritrade trading account. That’s a big deal because the general population has not signed up and got a Coinbase or Circle wallet yet. We are going to see in the next three to eighteen months more ways to buy bitcoin.”
Novogratz’s comments followed bitcoin’s explosive price rally this year, wherein the cryptocurrency surged by as much as 275 percent to $13,868.44 from January 1 open. A substantial part of those gains came during the second fiscal quarter, closing the period with 189.86 percent in returns upon rising from $4,096 to $10,761.26.
Following the establishment of a yearly high, the bitcoin price corrected downward by almost 30 percent in the previous six days. But according to Novogratz, such downsides did not hurt the cryptocurrency’s long-term bull bias.
“I think we will see the market consolidating between $10,000 and $14,000 for a while before it takes off for the next leg higher,” said Novogratz. “The new institutions, the State of Wisconsin or the Texas Teacher Union — if those guys start coming in, then you would see bitcoin go towards the old high of $20,000.”
He reiterated that bitcoin is an asset with a fixed supply, much like gold. The cryptocurrency’s scarcity against the rising demand remains one of the biggest catalysts that could send its price towards $20,000 or higher.
“It is a $160 billion market now, but Gold has an $8.5 trillion market cap. Bitcoin has a long way to go before it replaces gold,” said Novogratz.
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Last modified: March 4, 2021 2:40 PM