One of the most prominent names in cryptocurrency investing believes that Bitcoin’s downtrend woes are near an end, and that a revisit to Bitcoin’s all-time high is on the cards during 2019 due to increased interest from institutional investors.
Novogratz: Taking Out $10K Will Lead to New Highs
Mike Novogratz, founder and CEO of crypto-focused investment firm Galaxy Digital Capital Management, is rarely without comment on the state of the cryptocurrency market, and in particular, Bitcoin.
Bitcoin being the most well-known crypto asset and with a market cap that is 50% of the overall market’s total aggregate, tends to be the focal point of most investors when speaking about the influx of institutional investors waiting to enter the market.
That institutional influx, Novogratz says, will take Bitcoin to its previous all-time high and beyond in 2019.
“There’s going to be a case of institutional FOMO [fear of missing out], just like there was in retail,” Novogratz reports the Financial News.
Before that happens, Bitcoin needs to take out a couple key overhead price resistance points.
“Bitcoin has to take out $6,800, and after that we could end the year at $8,800-9,000,” he clarified. After that, though, it’s off to the races for Bitcoin.
Novogratz recently had a moment of bearish sentiment, suggesting that Bitcoin wouldn’t break $9,000 before the end of the year, and was targeting the second quarter of 2019 when Bitcoin could break $10,000.
However, the negative sentiment appears to have passed, and he’s now suggesting that break of important psychological resistance at $10,000 will occur during the first quarter of 2019 – a break he expects to start the next bull run, potentially beating previous highs.
“By the end of the first quarter we will take out $10,000 and after that we will go back to new highs — to $20,000 or more,” Novogratz speculated.
Novogratz had famously predicted Bitcoin reaching $40,000 before the end of 2018, double its previous all-time high of nearly $20,000 it reached back in December 2017. Novogratz later changed his tune due to the severity of the continued downtrend keeping cryptocurrency prices at bay.
Institutional FOMO Rally Foundation Being Built Already
The impending institutional rally investors like Novogratz have been pointing to since Bitcoin’s all-time high may be right around the corner.
In recent weeks, a number of traditional banking firms have shown increased interest in crypto, such as Fidelity, who recently became the first Wall Street incumbent to launch a dedicated cryptocurrency trading operation called Fidelity Digital Asset Services.
Now that the first stone has been thrown, a domino-effect is expected where many of Fidelity’s closest competitors join what is turning into an arms race.
Next month, the parent company of the New York Stock Exchange, Intercontinental Exchange, will be launching their Bakkt trading platform, which offers physically-settled Bitcoin Futures contracts, which many believe could help cause Bitcoin’s price to increase by eating into the cryptocurrency’s limited supply.
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Author: Tony Spilotro