Mike Novogratz — the CEO of cryptocurrency merchant bank Galaxy Digital — admits that the Crypto Winter will probably last longer than he had anticipated. However, the Goldman Sachs alum still believes that institutional investors will eventually enter the market, and remains an avowed bitcoin bull.
Novogratz tweeted : “Don’t think we head north for at least a few more months. Always take longer for institutions to move. Very confident they will. Tons of activity under the hood. Stay the course.”
The protracted market slump has caused many a crypto enthusiast to scale back their exuberance. And Novogratz is one of them.
In November 2018, Novogratz boldly set a $10,000 bitcoin price target for the end of the first quarter of 2019. He also predicted that bitcoin would top $20,000 this year.
But as the market slump continues with no signs of an immediate reversal, Novogratz has now apparently adopted a more sober outlook.
That said, don’t expect bitcoin stalwarts to jump ship anytime soon. We’re at the beginning of February, and there’s still almost 11 full months left in 2019.
Crypto evangelists like Dan Morehead — the CEO of bitcoin investment firm Pantera Capital — say it’s time for those with short-term mindsets to stop freaking out. Why? Because the industry has weathered bear markets before, and this one is different from the others, Morehead insists.
“In the previous one, I had more of a worry in the pit of my stomach about whether blockchain was actually going to work,” Morehead said. “With this one, the underlying fundamentals are much, much stronger than they were in the 2014-2015 Crypto Winter.”
Critics may say that bitcoin bulls like Dan Morehead, Mike Novogratz, the Winklevoss twins, and Circle CEO Jeremy Allaire are unrealistically optimistic. That’s probably because they have skin in the game.
They’re not just talking the talk; they’re walking the walk. They have invested a lot of their own money in the success of the industry. Therefore, they are highly motivated to ensure it thrives.
Last month, Novogratz increased his holdings in Galaxy Digital to 79.3% after acquiring an additional 2.7% of its outstanding shares for $5.4 million. He previously held a 76.6% stake.
The former Wall Street banker is now Galaxy Digital’s single largest shareholder, with 221 million shares. If that’s not a sign of conviction or personal accountability, it’s hard to say what is.
Meanwhile, skeptics are betting that the crypto market will crater into extinction. Not surprisingly, the most vocal opponents are people from traditional financial institutions and legacy banks whose existence is threatened by the rise of the crypto industry.
Three weeks ago, futures trader Anthony Grisanti predicted that the bitcoin price would soon tank below $3,000 amid a mass sell-off.
Grisanti is an analyst at CNBC who previously traded energy futures at Bear Stearns. Like other crypto naysayers, Grisanti believes it’s only a matter of time before bitcoin totally collapses.
He claims that whenever the bitcoin price rallies a little, it’s because people are liquidating their positions. “Whether or not they’re liquidating outright or the futures, they are liquidating,” Grisanti claims.
Grisanti’s fellow CNBC commentator, Scott Nations, also blasted bitcoin, saying it has no value. He also dissed millennial crypto fans, saying they’re too inexperienced to understand that they’re witnessing a bubble that’s bursting.
“If you are in your 20s, you have never seen an asset bubble. You were a teenager during the housing bubble. You were not even a teenager during the dotcom bubble. Well, baby, this is a bubble! And right now, it’s coming unglued.”