Cryptocurrencies keep expanding everywhere, but they could be reaching new all time highs in the future. Michael Novogratz, a famous billionaire investor and former Goldman Sachs, said that the crypto market could reach $20 trillion dollars in the future.
Novogratz Bullish on Cryptocurrencies
Novogratz has always been giving positive comments towards virtual currencies and Bitcoin. This time he said that the market may reach new records once institutional investors enter the game.
During an interview with Erik Schatzker at the Bloomberg Invest Summit, he said that the crypto market is moving to the $20 trillion dollars’ region. Of course, Novogratz explains that the path towards that number would not be easy.
At the same time, during the interview Novogratz explained that the last bull run in the cryptocurrency market can be compared to the bubble experienced in 1996 by dot com companies. Later, the market reached a valuation of $6 trillion dollars in 1999.
Novogratz commented about that:
“[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, South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like the bubble when we’re at $20 trillion.”
Additionally, Novogrtaz talked about how institutional investors would be key players in the future bull run. During the last crypto craziness, most of the investors were individuals. During the next market surge, institutions and wealthy investors will have an important role.
“It won’t go there ($20 trillion) right away,” explains Mr. Novogratz. “What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors].”