Bitcoin bull Mike Novogratz remains confident that the market will see renewed growth, claiming that there is an institutional fear of missing out (FOMO) going on.
Institutions Are Moving In
The combined market cap is currently worth $218 billion, according to CoinMarketCap. Bitcoin is trading at $6,524, a range it has remained floating around for some time. It’s a far cry from the $20,000 value it saw last December.
Yet, according to Novogratz, the market is getting ready for another surge. The founder and CEO of Digital Galaxy Management was speaking to CNNMoney’s Markets Now yesterday. During his interview, he said:
“You’re seeing now institutions moving in.”
In his opinion, there is an “institution FOMO going on,” which will see more institutions jumping on board. Additionally, he believes that big companies are now beginning to take Bitcoin seriously. He cites Starbucks and Microsoft, arguing that they will allow people to use crypto to pay for things.
Notably, though, while the coffeehouse is getting into crypto with the Intercontinental Exchange (ICE), Microsoft, and others, it has made clear that it’s not letting its customers pay for their beverages in cryptocurrency.
Another factor that will increase Bitcoin’s price is when it becomes part of people’s financial portfolios.
Novogratz added:
As you start getting custody and service providers in and around the system, it allows pension funds and endowments to get involved.
Bitcoin Will Grind Back
On the 13th September, Novogratz stated that the crypto’s price had finally bottomed. At the time of the report, Bitcoin was trading just under $6,300.
Since then, however, it has dropped back below $6,300 and hasn’t gone higher than $6,700. Interestingly, while he said at the time that the markets are going to bounce back, he has since conceded that it will most likely “grind back.” This is particularly notable considering he said last year that Bitcoin could “easily” reach $40,000 by the end of 2018.
However, as we’ve seen with the market so far this year, it seems unlikely that this will happen. Yet, toward the end of the CNNMoney interview, Novogratz remains adamant that a rally will take place. In his opinion, this will amount to 30 percent by the end of the year.
He went on to state that during the first quarter of 2019, “you’ll really start seeing it move.”
Do you think Novogratz’s is right? Will Bitcoin see another price rally this year? Let us know in the comments below.
Images courtesy of Shutterstock, CNNMoney Markets Now