Michael Novogratz Predicts Bull Run For The Next Year, Institutional Money Coming Soon

The cryptocurrency market is sure a dynamic one; things just happen overnight, and usually, they come without warning, like the push that bitcoin and other cryptocurrencies got recently because of the Tether selloff that still keeps affecting the market. While the market has experienced several good news in the last month, it has mostly been moving sideways without reacting to the sentiment that these announcements have been trying to spread. That is why Michael Novogratz, a known cryptocurrency investor had previously predicted that bitcoin won’t get to $10k this year.
Michael told in an interview with Bloomberg this morning that he expects the next year to be a positive year for cryptocurrencies due to the institutional push that is occurring now with announcements from Bakkt and Fidelity. Bakkt is a newcomer, but it has also great support from institutions and startups that are betting into cryptocurrency going mainstream as an asset class, and Fidelity is an already known giant asset management and services company that will start to offer cryptocurrency services next year.
Michael believes that all of these offers would inspire trust to institutions and funds to finally get into the cryptocurrency van. The custody issue is one of the most difficult matters of investing in cryptocurrencies for big enterprises. But he thinks the fact that there are now multiple big names offering institutional grade solutions to the custody problem will clearly make risk assessment department consider cryptocurrencies as an interesting investment choice from now on.
But the big question is if this will really will convince institutions to invest in cryptocurrency finally. Michale seems optimist in this point saying that solving the custody problem is a big part of the equation. But reputable companies had already offered custody solutions earlier this year and that did not make institutions flock to crypto. Coinbase started offering this kind of solutions at mid-year, and few clients signed up.
Michael is sure that if the institutions come to crypto we will see record number the next year. But even if the custody issue gets resolved, there is still plenty more to take care of. Volatility is one of the main concerns of most people, and this won’t be resolved anytime soon. Also, compliance and regulation are issues that need to be addressed in the near future. Without a clear regulatory framework is highly unlikely that serious institutions would put their money behind cryptocurrencies anytime soon. Still, a start is a start, and Novogratz is positive about what is coming for the crypto space for the next year.

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