Mike Novogratz, a prominent cryptocurrency investor, and CEO of Galaxy Investment Partners has toned down his optimism, reiterating that he doesn’t expect a price surge in the price of Bitcoin until institutional adoption occurs, which could happen in the first half of next year.
Speaking with Bloomberg’s Erik Schatzker on “Bloomberg Markets: The Close,” the Galaxy Investment Partner who is known for his optimism about the future of cryptocurrencies, notably Bitcoin, said the price of bitcoin wouldn’t break $10,000 in 2018.
“One thing you learn in this process is that everything takes a little longer than you hoped it would. I don’t see us breaking $10,000 by the end of the year,” he told the network.
Novogratz also spoke on Fidelity Investments’ decision to release a custodial solution tailored to institutional investors that were particular about the safety of the digital assets they purchase. He believes this move by Fidelity would favor the market, but he was a bit cautious about how much mass interest it can garner and how quickly it can achieve it.
He went on to add that Fidelity won’t start “seeing institutional flows into purely crypto assets late first quarter [or] early second quarter.”
Just last month, Novogratz told CNBC that he sees bitcoin price increasing by 30 percent by the end of the year. He also said once the price rebounds to the $10,000 range, institutions will have an “‘all clear’ sign for people — big institutions and pension [funds] — to start investing.”
Novogratz has emphasized the need for a long-term rally, which he believes could lead the crypto market to a $20 trillion valuation. He also remains optimistic about the market’s ability to surpass all heights achieved in the past. He said the crypto market will bounce back from the major corrections being experienced in 2018 and surpass the previous all-time highs.
“[Cryptocurrency] is a global revolution. The internet bubble was only a US thing. It was rich US people participating. [Cryptocurrency] is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like a bubble when we’re at $20 trillion,”