Hedge fund legend Mike Novogratz?predicts the fact that bitcoin price could “easily” reach $40,000 by the end of 2019 , while ethereum is poised to undertake a threefold gain throughout the same timeframe.
“Bitcoin could very well be at $40,000 right after 2019 . It easily could,” hmo’s Fortress manager said Monday on CNBC’s “Quick money,” noting of the fact that asset has significant upside problems . utility as “digital gold”.
Mike Novogratz on Bitcoin
Previously, Novogratz had forecast that bitcoin would reach $10,000 by the end of 2019. Although the global average bitcoin price hadn’t quite broached that threshold at this time whilst writing, bitcoin had reached the five-figure mark on several South Korean exchanges.
Bitcoin has risen more than 1,200 percent for ones year, and Novogratz believes that rally will continue into 2019 — albeit from a somewhat more conservative pace — to the heels of increased institutional activity inside the crypto markets.
“There’s a sizable wave of coming, not just for here but all across the globe,” he said.
Novogratz aims to facilitate that wave through Galaxy Investment Partners, a $500 million crypto asset hedge fund he is launching batch that we get.
He expects that this introduction worth mentioning new market participants may also help bitcoin “easily” reach $40,000, that would raise its market cap to approximately $670 billion.
But although bitcoin will stay the “crypto king,” Novogratz believes other cryptocurrencies — including ethereum — will catch its tailwinds and experience phenomenal growth in addition.
“Ethereum, which I think just touched $500 or possibly is getting close, is usually triple where it really is as well,” he added, predicting that your second largest cryptocurrency often a threefold increase looking at the present level.The ethereum price reached a new all-time high of $493 on Monday and is also currently trading at $477 on U.S. exchange Coinbase.
However, he cautioned that although market’s present upward trajectory will continue, so will its volatility, and that he said that yet not be surprised if for example the markets notice a steep correction through the short-term.
“What’s different about these coins than other commodities … you don’t have supply response here,” Novogratz said. “So it’s a speculator’s dream within that as buying happens there’s no new supply response which comes up. So every price move gets exaggerated. It’s receiving exaggerated on how up. There will be 50 percent corrections. It may get exaggerated in route down.”
Nevertheless, Novogratz believes that the market’s fundamentals will resist these bearish hesitations, enabling the combined equity all cryptocurrencies to boost as high as $2 trillion in 2019 from their present valuation of $300 billion.