Novogratz says that there will be an institutional FOMO with Bitcoin expected to cross $10000 by the end of first quarter of 2019.
This year so far has been the year of huge corrections and regulations for Bitcoin and the overall crypto market. The Bitcoin price is down by nearly 70% from its peak of $20000, as the world’s largest cryptocurrency is now forming a new base at $6000. However, this hasn’t stopped many Bitcoin enthusiasts from making predictions for the next BTC bull run.
Hedge fund titan and Bitcoin bull Mike Novogratz predicts that Bitcoin price will set a new record in 2019 breaking all previous highs. Novogratz is betting big on institutional investments to fuel the Bitcoin price surge in 2019. Just like we saw the retail FOMO (fear-of-missing-out) in 2017, we will see institutional FOMO in 2019, predicts Novogratz.
Bitcoin Won’t Cross $10000 By the Year-End
Last month, in an interview with CNBC, Novogratz said that institutional players have started to chip-in the market. However, he also added that there is little probability that Bitcoin will cross $10000 this year. Novogratz reiterated his opinion during his latest talk with Financial News.
Novogratz said: “Bitcoin has to take out $6,800, and after that, we could end the year at $8,800 to 9,000”. He went to add that “By the end of the first quarter [of 2019], we will take out $10,000. And after that, we will go back to new highs — to $20,000 or more.”
When Bitcoin was trading at its peak last December 2017, Novogratz had predicted the crypto to touch $40000 this year. However, things have turned out to be quite opposite with a massive cut in the crypto market valuations. Not only Novogratz, but many other crypto experts are correcting their targets with the changing regulatory environment in the crypto space.
Much recently, popular crypto analyst Alex Krüger made important price predictions for Bitcoin. The predictions are made based on upcoming important events like ICE’s Bakkt platform and the arrival of CBOE Bitcoin ETF.
Not only financial organizations but also endowments from big universities like Yale, Harvard, and Stanford have parked huge sums of money in Bitcoin.
Institutional Investors Awaiting Clear Regulatory Measures
Although regulations were earlier seen as an interference in the crypto market, there are likely to bring stability in the volatile crypto environment. Proper regulatory measures will ensure a safe and secure environment for crypto investors. In fact, the lack of regulatory measures is the most likely reason for slow institutional entry.
Recently, Larry Fink, CEO of BlackRock – the world’s biggest asset management company – said that they won’t consider launching a Bitcoin ETF unless and until the industry is “legitimate”.
“I wouldn’t say never, when it’s legitimate, yes,” said Fink. He further added: “It will ultimately have to be backed by a government. I don’t sense that any government will allow that unless they have a sense of where that money’s going for tax evasion and all of these other issues.”
Several government bodies are now working to legitimize their local crypto market by introducing new regulatory measures. More clarity is likely to emerge regarding this matter in the coming months.