Novo Expects BTC Price Rally
Whether you hate or love him, it may be hard to deny that Mike Novogratz, a Goldman Sachs banker-turned-Bitcoin (BTC) diehard, is committed to the crypto cause. In a recent appearance on an array of mainstream media outlets, the investor revealed that he sees a bright future for the cryptocurrency space, especially in terms of the value of BTC.
In a brief interview with CNN Business at SALT Conference, a massive finance and tech event conducted in Las Vegas, Novogratz, who goes by Novo, explained that “Bitcoin has popped back up,” making it clear that the cryptocurrency isn’t dead. He then asserted that more likely than not, the bottom is in, unless, of course, the industry sees a black swan event, like the recent hack on Binance yet far, far worse. Novogratz explains: “It would take something like that to shatter this newfound confidence.” The former institutional investor, who adopted Bitcoin in 2012 or 2013, does note that the hack on Binance does deter institutional investment, adding that “a little bit of guardrails can go a long way”.
In the long-term though, he is abundantly bullish. He explains that over the next 18 months (so by the end of 2020), Bitcoin could begin to a rally
However, it is important to note that for the time being, he expects for BTC to “struggle” at the $6,000 price level. The given reasoning for the quip was minimal, but this point ties in with theories that as Bitcoin failed to fall under $6,000 for months in mid-2018, it may take a while for BTC to do the reverse.
Novogratz’s recent appearance comes after his firm was revealed to have bled out of 2018.
In a press release published last Monday, the New York-headquartered cryptocurrency merchant bank Galaxy Digital unveiled its financial results for the fourth quarter, and thus, fiscal 2018 as a whole. It lost $97 million in Q4 of 2018, up from the $76.7 million loss registered in Q3. Per the filing, much of this loss can be attributed to its principal investing and trading businesses, presumably due to the fact that November and December saw Bitcoin and other cryptocurrencies fall to fresh lows, far below what most analysts suspected. In summation, the firm burned a jaw-dropping $272.7 million if 2018. Ouch.
Fundamentals To Push Bitcoin & Crypto Higher
On the matter of what will push the space higher, Novogratz has looked to a number of subjects. On Twitter recently, he postulated that the Federal Reserve’s recent action to bend to the will of Donald Trump, along with proposed policies from the other side of the political spectrum, are making him extremely bullish for a sound money that is decentralized, censorship-resistant, among other things.
What he also looked to was fundamental news. For instance, he suggested that the news that Facebook is poised to delve into the blockchain space with its own digital asset may boost traditional cryptocurrencies, as awareness and love for this asset class will skyrocket tremendously. But only time will tell if this is true.
Photo by Chris Liverani on Unsplash
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