Billionaire Mike Novogratz of Galaxy Investment Partners believes Bitcoin (BTC) will have a 30% rally by December 2018, which means the current price of $6,700 would jump to $8,700 if he's correct. The backer of EOS (EOS) and former Wall Street hedge fund manager made the prediction on Friday in a CNBC "Fast Money" interview.
Novogratz said that cryptocurrencies have bottomed in prices and that most of the selling have concluded. That means valuations have nowhere to go but up. "More importantly, we're seeing institutions slowly getting into the space …You're seeing lots of activity in the private markets." He adds, "Bitcoin will outperform for a while" because many institutions consider Bitcoin as a safe store of value and will prefer it over speculative altcoins.
Institutions are building the infrastructure for investors to pour money into cryptos, said Novogratz, including top banks. New institutional investors could enter within three to six months. In Q1 or Q2 of 2019, the market could see an avalanche of money pour intro cryptocurrencies. According to the former Goldman Sachs partner, it only takes one major player to invest in the space for others to join in and bring loads of capital. These include influential endowments.
Growing Adoption Of Bitcoin
"Digital gold is going to be an easier thing for people to swallow," said Novogratz. For Bitcoin, he says it's all about growing adoption rates to justify higher valuations. With each passing year, younger tech-savvy investors will continue to invest in digital assets to reflect today's digital realities. "[Bitcoin] is also going to be used as a payment system which surprises me … You're going to see [Bitcoin] used in the retail space and once people see it, they'll start hoarding some." He adds, "That will help with brand recognition and people's acceptance of it."
Earlier this week, billionaire Tim Draper made an extremely bullish prediction for Bitcoin in TheStreet interview. "Maybe it will dip further but boy, I made that prediction and I'm sticking to it. $250,000 by 2022 for Bitcoin."
Draper is an investing legend in Silicon Valley where he made early stakes in Hotmail, Skype, Tesla and other unicorns. A few years ago, he won an auction of $18 million for 30,000 bitcoins that were confiscated from Silk Road by the U.S. Marshals Service. Those BTCs are worth nearly $200 million at $6,700.
In a recent prediction, Satis Group forecasts Bitcoin to gain 367% by next year to $32,914. The ICO advisory firm also believes that privacy coins (such as Monero, Zcash, Dash, PIVX) will make the biggest gains out of all coins over a 10-year period.
"Bitcoin is anti-fragile," says American economist Jeffrey Tucker. "It's a technology that grows strong when under attack. It has experienced blows, but it only grows stronger and better. This is why the critics are constantly feeling humiliated and somehow never admit it."
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