Bitcoin bull Mike Novogratz has said that a Bitcoin rally is likely to take place in the first six months of 2019 when institutional investors jump in.
It Won’t Reach $10,000
Speaking in a Bloomberg Television interview, he said:
One thing you learn in this process is that everything takes a little longer than you hoped it would.
He added that he doesn’t think Bitcoin will break $10,000 by the end of 2018. This is a slight improvement from his last prediction. Earlier this month, Novogratz made the gloomy projection that Bitcoin wouldn’t see $9,000 by year’s end.
Notably, his comments are in direct contrast to those he made in November. Then, he projected that the number one cryptocurrency could “easily” hit $40,000 by the end of 2018. Yet, as the market has seen, it failed to reach the $10,000 mark back in May. For the past several months, Bitcoin has been trading within the $6,200-$6,800 range. Earlier this week, it reached over $7,000 again. Reports indicated that this could be down to investors selling their Tether before putting their money into Bitcoin.
Lately, as the market continues to shift with interest waning and growing, Novogratz has given differing views. The CEO and founder of Digital Galaxy Management noted in September that institutional investors would drive the market price because of a fear of missing out (FOMO).
It remains to be seen if Novogratz is right and another bull run is seen.
Fidelity to Offer Digital Assets Services
U.S.-based Fidelity Investments revealed that it is to launch a crypto arm offering digital asset services targeted at institutional investors.
Now, more than ever, financial establishments are offering services that are designed to make themselves attractive to bigger investors. Fidelity has become the latest major financial firm to announce it will be providing this. According to a report, it will be providing custody and trade execution services to “sophisticated” investors. This includes family offices, hedge funds, and market intermediaries.
Crypto exchange Coinbase has launched its Coinbase Custody a service for large institutional investors. Whereas, Citigroup is, reportedly, offering a way for institutional investors to enter the market without actually owning any crypto coins.
The process may be slow going, but progress is being made. At the moment, the market appears to have reached a stalemate. While this highlights the market is less volatile, it could also be an indicator that money isn’t going in either. It’ll be interesting to see if a possible influx of institutional investors will ignite the Bitcoin price rally that Mike Novogratz predicts.
Could institutional investors help make that shift? Let us know in the comments below.
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