Mike Novogratz, a former Goldman Sachs partner and founder of Galaxy Digital in an interview with Bloomberg TV on February 13 stated that Bitcoin will “grind” its way up to $8,000 in 2019. Novogratz also affirmed that Bitcoin will become the digital gold and the sovereign currency instead of the U.S. money or Chinese money.
Is the Cryptocurrency Market at the Stage of Recovery?
Mike Novogratz was asked a few questions while on Bloomberg’s TV and one of such, is whether it’s the start of a market recovery we are experiencing. Novogratz responded that the cryptocurrency bubble of 2017 and January 2018 has ended. Even though that may have hurt, the previous year helped to flush out most of the retail frenzy in the market.
Therefore, we are at the stage where “people’s revolution” which led to “retail”, will hand over to “institutional investors”. In the case of the latter, the needed architecture is currently being put in place to make that happen. There are now venture funds and hybrid funds. Instances, where Novogratz pointed out, is the Yale University’s investment in a digital assets fund in 2018.
Novogratz Says Where Yale Goes, People Follow
According to Novogratz, where Yale goes, people are bound to follow. He added that in the course of the next 6 to 12 months, the market is bound to see more institutional investors pulling in. He also noted that the $3,400 to $3,600 price trend Bitcoin has maintained so far, is an equilibrium point that may lead to a significant upward change.
Another question that was posed, is how high he thinks Bitcoin will likely go in 2019. The founder outrightly stated that the price will not bubble immediately, but it will definitely take a grind upwards. According to him, he is looking at a market price of around $8,000 in 2019 and if that happens, then there will be a lot of enthusiasm.
Novogratz Believes Bitcoin Will be the Digital Gold
Also worthy of note, is the founder’s belief that since there are 118 elements on the periodic table and only gold has so far stood out because it is valuable, the same can be said about Bitcoin. In Novogratz’s opinion, there will be a place for sovereign money which will neither be the U.S. money nor Chinese money because sovereign money costs a lot. In his own words,
Bitcoin is going to be digital gold. There’s going to be a place where you have soveriegn money. It’s not U.S. money. It’s not Chinese money. It’s sovereign. And so, sovereignty costs a lot. It should cost a lot.
Those asides, BTCNN on February 7 also informed of Nikolaos Panigirtzoglou, a JP Morgan analyst’s opinion that Bitcoin can make a major comeback. According to him, the market has gone through its bubble and burst stages, and the next stage will be institutional adoption.