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Billionaire investor Michael Novogratz, a legendary ex-hedge fund manager, formerly of investment firm Fortress Investment Group, said the price of Bitcoin is expected to increase by 30% by the end of 2018 .
Once Bitcoin surpassed major resistance levels at $ 6,800, $ 8,800 and $ 10,000, Novogratz said the institutions would enter the market via Trusted Depository solutions.
"It's also a bull market for institutions that are building the infrastructure for real money investors to start investing in this space … I think in three to six months there will be a clear sign for all – the big ones institutions and pension funds. [funds] – to start investing, "he said.
Can not reach $ 10,000
In an interview with CNBC's Fast Money, Novogratz explained that it was impossible for Bitcoin not to bounce at a range of $ 8,800 to $ 10,000. Over the past three days, the digital cryptography market has added $ 25 billion to its valuation, thanks to the 100% increase in Ripple's value and the strong momentum demonstrated by Ethereum.
As CCN had previously reported, Novogratz pointed out that the next long-term rally, likely to result in a $ 20 trillion cryptographic market valuation, will be triggered by FOMO (fear of passing next door) among institutions such as pension funds and hedge funds.
In the past month, Morgan Stanley and Citigroup have announced plans to add custodial crypto solutions to their existing infrastructure in the coming months. Since BitGo and Coinbase already operate as reliable and regulated depository solution providers, the products that institutions can rely on to enter the cryptography market are sufficient.
As such, Novogratz said that once Bitcoin demonstrates a new strong short-term rally backed by individual investors and retail traders by the end of this year, more institutions would be investing in the market.
"It's not right ($ 20 trillion) right now, what's going to happen is that one of those fearless pension funds, a market leader, is going to say, you know what? We have custody, Goldman Sachs is involved, Bloomberg has an index against which I can track my performance, and they will buy in. And suddenly, the second guy buys.The same FOMO that you saw in the retail [will be demonstrated by institutional investors], Explained Novogratz.
It's not everyone who's talking
In 2017, discussions took place on the movement of capital from the traditional financial sector to the cryptography market. However, at the time, there was no infrastructure in place to attract institutions, which meant that even if some institutions were attracted to the market, they could not use any services to invest in the asset class. .
With significant progress in recent months, companies such as Coinbase and BitGo are expecting billions of dollars to reach the market. By 2019, as long as Bitcoin maintains its momentum in the range of $ 8,800 to $ 10,000, the cryptography market should see a substantial increase. in evaluation.
Although Bitcoin has not seen any significant upward movement over the last two days like Ripple and Ethereum, the dominant cryptocurrency has been stable in August and September, which is positive for the medium-term performance of the bank. active.