Crypto investment firm, Galaxy Digital CEO, Mike Novogratz, expects the most valuable digital coin, Bitcoin to return to glory in 2019. He is not worried as to what is the current situation in respect of the virtual asset that is witnessing subdued and sluggish sentiments. His comments should be a boost to those who are expecting a turnaround of fortunes in the cryptocurrency and that should also lead other virtual assets to follow suit.
Novogratz thinks that bitcoin will break the doldrums that is currently seen with the cryptocurrency. This could happen next year, i.e., 2019 and predicts a price of $20,000 driven by institutional investments. The former Goldman Sachs’ investment banker thinks that fear of missing out would fuel the market in the upcoming months. His confidence stems out from his belief that the virtual asset will gain more mainstream traction. Additionally, conventional finance players’ entry will also boost the overall crypto sector.
Galaxy Digital CEO stated that bitcoin price should first break out the levels of $6,800. Once this is achieved, the digital coin price could hit between $8,800 and $9,000 before the current year ends. According to him, he sees the price reaching $10,000 mark by the end of the first quarter of next year. Once the digital coin has reached the five-digit mark, it will reverse to fresh highs with potentials to hit $20,000 and more. The overall cryptocurrency market has taken a strong hit in the current year after peaking to life-time highs in December 2017.
Matter of Time
Though the digital currency market is going through a challenging period, the industry witnessed multi-billion dollar announcements from Universities such as Harvard, Yale, and Stanford while North Carolina, MIT and Dartmouth Universities joined the bandwagon. Until now, the combined endowments reached $108 billion for the crypto segment. Though analysts term the universities’ allocation as a small one, their action could trigger a chain of reaction on other institutional investments like pension funds.
Novogratz and other crypto experts bet it is only a question of time before the floodgates are opened for institutional investors as Wall Street, and conventional financial service providers have the habit of copying each other. Galaxy Digital CEO thinks that the crypto market will gain from formal regulation despite the existing ecosystem taking pride in being a decentralized and unregulated platform.
Currently, most of the digital coins are unregulated in most of the countries in the world. Therefore, any regulation will only help to legitimize the industry and push the prices up. At the same time, the regulation could remove the scamsters from the environment. One of the biggest asset managers, BlackRock is slowly embracing the virtual asset. Its CEO Larry Fink indicated that it would launch a bitcoin ETF if the industry becomes a legitimate one.
Fink indicated that “It will ultimately have to be backed by a government. I don’t sense that any government will allow that unless they have a sense of where that money’s going.” This is a clear indication that financial institutions are waiting in the wings to enter the crypto markets and this is where Novogratz places his long-term outlook for the digital coin sectors.