The unprecedented growth cryptocurrencies experienced by the end of 2017 had many crypto bulls predicting the crypto market would surpass the $1 trillion mark in 2018. However, this hasn’t been the case. Cryptocurrencies may have failed to live up to the billing so far, but according to Mike Novogratz, a billionaire crypto investor, there is room to be optimistic.
Currently trading at $6,350, Bitcoin has lost over 66 percent of its value from its peak price of $20,000. It’s not Bitcoin only that has suffered, but the entire crypto market has lost a substantial amount of its value.
Cryptocurrencies Have Suffered From Increased Scrutiny
Part of the problems that have negatively affected cryptocurrencies includes; more investigation by regulators, allegations of market manipulation and the existence of scam projects that have defrauded investors billions of dollars.
However, Mike Novogratz, the Galaxy Digital CEO, and crypto investor, believes it will be impossible for Bitcoin not to pass the $10,000 mark by the end of the year. The billionaire appeared on CNBC’s Fast Money to make these comments.
He said his prediction lies on technical indicators referencing a tweet he made last week where he predicted Bitcoin had bottomed out.
The former hedge fund manager believes we are set to see cryptocurrencies build upon the recent rally which started on Friday. One key factor he mentions is the fact that institutions are slowly preparing themselves to be in the crypto space. A move that is expected to push Bitcoin past its previous highs.
Novogratz points out to the fact that many closed-door deals are taking place that involves institutions. He mentions the Telegram $1.7 billion private coin offering as a good example.
He also adds that financial service providers like ICE and Goldman Sachs are working on constructing a framework that will facilitate the global crypto adoption.
On this he said:
“It’s also a bull market in institutions building the infrastructure needed for real money investors to start investing in this space… I think that in three to six months from now, there will be an “all clear” sign for people — big institutions and pension funds — to start investing.”
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology