Since December 2017, some virtual currencies have lost more than 90% of their price. However, some experts remain bullish in the middle and long term. Michael Novogratz, a recognized crypto investor, said that he does not expect a price surge until institutional investors enter the market.
Novogratz Believes Institutions Could Trigger a New Bull Run
Although 2018 did not provide positive price action for virtual currencies, projects started to pay closer attention to their work. Since there is an increased demand from institutions, companies are working on institutional-grade platforms.
During a conversation with Erik Schatzker on ‘Bloomberg Markets: The Close’, he showed he is optimistic about cryptocurrencies.
The crypto bull market in 2017 was triggered by retail investors. However, in 2019, Bitcoin price could surge if institutional investors adopt it. According to Novogratz, this could happen during the first half of the next year.
“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 mentioned.
For example, he said that Fidelity, which is developing a crypto institutional investment tool, would not see institutional flowers until ‘late first quarter [or] early second quarter [2019].’
Additionally, last month, he said that Bitcoin price would increase by 30% by the end of the current year. At the moment of writing, Bitcoin is being traded around $6,450 dollars, according to CoinMarketCap. If that happens, Bitcoin would be traded around $8400 dollars before 2019.
In addition to it, he emphasized the need for a long-term rally. He thinks that the crypto market could have a $20 trillion dollars’ valuation.
In the past, he commented:
“[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 $30 trillion.”
The cryptocurrency market has a total capitalization of $208 billion dollars. Earlier this year, the total crypto market cap was close to $900 billion dollars.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.
