Former Hedge Fund Manager Indicates That Bitcoin Could Be Valued At $40000 Within 2018 End
Michael Novogratz, Hedge Fund Legend and a billionaire Bitcoin investors said that Bitcoin holds the very potential of multiplying by more than four times within the coming 13 months. This former Fortress hedge fund manager announced during an interview given to CNBC on Monday that:
“Bitcoin could be at $40,000 at the end of 2018. It easily could. Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well.”
Micheal Novogratz also recently predicted that Bitcoin price would touch $10,000 before year 2017 end.
Novogratz is bullish about the accumulated market cap of cryptocurrencies in rising by six times to cross $2 trillion with 2018 end. The former macro hedge fund manager working at Fortress Investment Group was quoted as saying,
“There’s a big wave of money coming, not just here but all around the world.”
Novogratz is currently planning to launch a digital assets fund worth $500 million through Galaxy Investment Partners, his new firm.
Japan had been one of the frontrunners of this Bitcoin drive with the Japanese yen comprising 62% of global bitcoin trading, U.S dollar-bitcoin trading comprises of 21% whereas South Korean won comprises of 9% according to information revealed by CryptoCompare.
Novogratz said that:
“What’s different about these coins than other commodities … there is no supply response here. So it’s a speculator’s dream in that as buying happens there’s no new supply response that comes up. So every price move gets exaggerated. It’s going to get exaggerated on the way up. There will be 50 percent corrections. It will get exaggerated on the way down.”
Given an upper cap on its production capacity at 21 million, Novogratz pointed out that companies cannot increase their mining for meeting the global demand in contrast to oil and other renewable energy products. This is what makes Bitcoins all the more alluring. The Bitcoin millionaire revealed that “probably over 20 percent” or “maybe even 30 percent” of his entire net worth comprises of cryptocurrencies.
Novogratz also shared that he has split his crypto holdings almost in half in between Ethereum and Bitcoin, the two leading pioneers of the crypto crusade. However he recommends retail investors to limit their crypto holding to just 1-3% of their net worth. Wealthy individuals have been advised to hold a maximum of 5-10% of their net worth in cryptos.
Novogratz had revealed in the “Fast Money” segment of CNBC on 10th October that he is bullish about Bitcoin entering into the $10,000 radar within the next six to ten months. Back then, a single Bitcoin token could be purchased by shelling out just $4874.
Information published by Reuters revealed that Novogratz had bought digital currency worth $15 -20 million during its mid-November price plunge. Since then, Bitcoin has recovered significantly registering a price of $9,732.76 on Monday. This has positioned the digital currency in a 10 times hiked rate since the beginning of the year and almost double compared to November beginning.
Tom Lee of Fundstrat also announced recently that Bitcoin will reach $11500 mark within mid-2018.
Standpoint Research’s Ronnie Moas also agreed to Tom by predicting a mid-2018 price of $14000 for a single Bitcoin token.
CNBC reported on 4th October that Novogratz had given his nod to joining a new token-exchange project as its board of advisors. This project will be work mostly on Ethereum.
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