On Wednesday (February 13th), Mike Novogratz, a former Goldman Sachs partner, as well as Founder and CEO of crypto-focused merchant bank Galaxy Digital, said that Bitcoin would become ‘digital gold’ and that he could easily see the Bitcoin price grind its way back up to $8,000.
His remarks came during an interview earlier today with Bloomberg Television. In this article, we highlight some of Novogratz’ most interesting comments.
Are We Seeing the Start of a Recovery in Crypto?
“We had a fantastic bubble in cryptocurrencies… 2017… and the bubble popped at the end of 2017, beginning of 2018… And last year, you realized how painful popped bubbles can be. Market was down about 90-odd percent depending on what crypto you’re looking at… What happened is all the retail frenzy… washed out… Now, you are in this process of handing off ownership from the people’s revolution, retail, to institutions, and all the architecture that institutions need to feel comfortable with this is being put in place… You’re starting to see first in the venture funds and now these hybrid funds, institutions like Yale Endowment [Yale Investments Office]… I mean David Swensen might be the most influential investor in the world investing in a fund that’s based in Bitcoin… And so, where Yale goes, people follow, and… what is stopping institutions from investing in crypto is a little bit the next guy in… Over the next 6-12 months, you’re going to see institutions put [in] a small amount of their assets… We’ve kind of hit an equilibrium in this $3,400–$3,600 zone… It feels like we’re just grinding along the bottom and the next move is significantly higher.”
How High Could the Bitcoin Price Go During the Rest of 2019?
“We are not gonna bubble back up… We are going to grind back up… But if you start buying, could you go to $8,000? Of course, you could… And then you see the enthusiasm pick up… In the next run-up, you’re really going to separate Bitcoin from a lot of the other cryptocurrencies… I think if there is 118 elements on the periodic table, only, gold, is valuable just because it’s a store of value… 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.”
What Novogratz Said on February 9th
On February 9th, Novogratz tweeted that he could not figure out why large macro funds, such as those managed by billionaire Ray Dalio’s Bridgewater Associates, did not simply maintain a 1% position in Bitcoin:
Don’t understand why all the big macro funds out there don’t have a 1 percent position in $btc. Just seems logical even if your prone to be a skeptic. @RayDalio #goldproxy #animalspirits #greatriskreward
— Michael Novogratz (@novogratz) February 9, 2019
Prominent crypto trader/analyst Alex Krüger made the following reply:
Many macro funds see $BTC as a scam.
Would you have had a position in Bitconnect if you thought could make you money worth your while, knowing it was a scam?
— Alex Krüger (@Crypto_Macro) February 9, 2019
Novogratz then answered his own question:
I think they just don’t want to deal with answering all the questions from investors, maybe having to update docs, and finding a custody solution they trust. All solvable in time.
— Michael Novogratz (@novogratz) February 9, 2019
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