Novogratz believes that once Bitcoin's market capitalization crosses the US $ 100 billion marks, and the daily trading volume of cryptocurrencies crosses the US $ 5 billion, there will be a sea of investors, both retail and institutional, who will invest serious amounts of fiat into the cryptocurrency market.
Mike Novogratz is a legendary ex-hedge fund manager of the Investment Firm Fortress Investment Group. In a recent interview with CNBC, he opined that Bitcoin price could be heading towards US $ 25,000 !! Yes, you read that correctly. In the past, there have been some mind-boggling price predictions for Bitcoin by various high profile people. One that comes to mind instantly is the prediction by Tim Draper, another billionaire who has been an early proponent of Bitcoin and Blockchain. Back in 2014, Tim Draper had predicted that Bitcoin price would cross the US $ 10,000 by 2018, and if you have been following the bitcoin price lately, it's not that far-fetched.
Coming back to the interview of Mike Novogratz, he talked about the fact that demand for Bitcoin and cryptocurrencies, in general, is going through an exponential rise as institutional investors are lining up to take massive positions in the space. Novogratz believes that once Bitcoin's market capitalization crosses the US $ 100 billion marks, and the daily trading volume of cryptocurrencies crosses the US $ 5 billion, there will be a sea of investors, both retail and institutional, who will invest serious amounts of fiat into the cryptocurrency market.
Novogratz stated that he has come out of retirement and is in talks with big institutional and retail investors to setup a fund for investing into Bitcoin and cryptocurrency market. When asked what he thinks the price of bitcoin could be in the near future, he stated that his interim target is the US $ 25,000 considering the rapid growth in demand for Bitcoin and other cryptocurrencies. He believes that as the crypto space matures with large investors and high profile traders the daily trading volumes will surge and the price of Bitcoin will have a long-term uptrend.
The entire crypto ecosystem is being built at a rapid pace around the globe, with exchanges coming up in Japan, Korea, US and other countries. The large bitcoin exchanges are already developing platforms for retail and institutional traders. The exchange founded by Winklevoss twins, Gemini has joined hands with CBOE, an options exchange to provide the platform for institutional investors. Overstock, the retail giant from the US, has partnered with RenGen and Argon Group to launch its new regulated token exchange platform considering the tremendous growth in the number of ICO’s taking place.
As the infrastructure gets built out and institutional investors being to invest in the space, US $ 25,000 bitcoin price might become a reality.
About the Author: Gursimran Bhullar, MBA (Business Development) from Clarkson University New York, Entrepreneur, Crypto Enthusiast & Investor.
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