#Investor Michael #Novogratz, a legendary ex- #hedgefund manager, formerly of the investment firm #Fortress Investment Group, has said that the Bitcoin price will likely see a 30 percent #increase by the end of 2018.
Once Bitcoin surpasses major resistance levels at $6,800, $8,800, and $10,000, Novogratz stated that institutions will enter the #market via trusted #custodian solutions.
“It’s also a bull market in #institutions building the #infrastructure needed for real money investors to start investing in this space… I think that in three to six months from now, there will be an ‘all clear’ sign for people — big institutions and #pension [funds] — to start investing,” he said.
Impossible Not to Reach $10,000
During an interview with CNBC Fast Money, Novogratz explained that it is impossible for #Bitcoin not to rebound to the $8,800 to $10,000 range. Over the last three days, the #crypto market has added $25 billion to its valuation, triggered by the 100 percent #increase in value of Ripple and strong momentum demonstrated by #Ethereum.
As previously reported, Novogratz emphasized that the next long-term rally, which may lead the #valuation of the crypto market to reach $20 trillion, will be #triggered by# FOMO (fear of missing out) amongst institutions like pension funds and hedge funds.
In the past month, Morgan Stanley and #Citigroup have released their plans of adding crypto custodian solutions to their existing infrastructure in the months to come. With BitGo and #Coinbase already operating as trusted and regulated custodian solution providers, there are sufficient products institutions can rely on to enter the crypto market.
As such, #Novogratz stated that once Bitcoin #demonstrates another strong short-term rally supported by individual investors and retail traders by the end of this year, more institutions will invest in the market.
“It won’t go there ($20 trillion) right away. What is going to happen is, one of these #intrepid #pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, #Goldman Sachs is involved, #Bloomberg has an index I can track my #performance against, and they’re going to buy. And all of the sudden, the second #uy #buys. The same #FOMO that you saw in retail [will be #demonstrated by #institutional investors],” explained #Novogratz.
It’s Not All Talk
In 2017, there were discussions on the movement of capital from the traditional #finance sector into the crypto market. However, at the time, there was no infrastructure in place to lure in #institutions, which meant that even if some #institutions were #attracted to the market, there were no services they could use to invested in the asset class.
With #significant progress being made in recent months, companies like #Coinbase and #BitGo expect billions of #dollars to come into the market and by 2019, as long as #Bitcoin maintains momentum in the $8,800 to $10,000 range, the crypto market is expected to #experience a substantial increase in valuation.
Although Bitcoin has not recorded a large upward movement in the past two days like #Ripple and #Ethereum, the dominant #cryptocurrency has demonstrated stability throughout #August and #September, which is positive for the mid-term #performance of the asset.