Billionaire hedge fund manager says Bitcoin could hit $40000 in December 2018

7 years ago - Published in Finance, Fintech Land, Technical Analysis

Former Fortress hedge fund manager Michael Novogratz said Monday that bitcoin can multiply more than four times in roughly the next 13 months.

On CNBC’s Fast Money, Novogratz expressed his optimism towards both bitcoin and Ethereum in the mid-term. Novogratz, who has predicted the price of bitcoin to achieve the $10,000 mark before the end of 2017, stated that bitcoin price will quadruple by the end of 2018, and the price of Ether, the native cryptocurrency of Ethereum, will triple in value.

"Bitcoin could be at $40,000 at the end of 2018. It easily could," Michael Novogratz said Monday on CNBC's "Fast Money." "Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well."

Earlier this year, Novogratz officially retired from the traditional finance industry to solely focus on cryptocurrency investments. Over the past few months, Novogratz has had conversed with many institutional investors, that are already preparing to engage in bitcoin trading by the end of this year, upon the launch of CME’s bitcoin futures exchange.

"What's different about these coins than other commodities, there is no supply response here. So it's a speculator's dream in that as buying happens there's no new supply response that comes up. So every price move gets exaggerated. It's going to get exaggerated on the way up. There will be 50 percent corrections. It will get exaggerated on the way down" he explained.

The former hedge fund billionaire was not the only analyst to concede that corrections would be an inevitable part of Bitcoin’s future.

In 2017, the bitcoin market has been led by general consumers and casual investors. Virtually no institutional money has been invested in bitcoin. By 2018, experts including Novogratz, Bitfury vice chairman George Kikvadze, and Coinbase CEO Brian Armstrong expect tens of billions of dollars to be invested in bitcoin, pushing the market valuation to a trillion dollars.

“Crypto Space is at $300 billion. Already some Private Wealth Offices are positioning to cater to the newly minted cryptocurrency millionaires. Now that’s going to be interesting,” wrote Kikvadze.