The crypto market has mainly declined in price this year, however, just recently it has been consolidating sideways. The bulls are still holding on to their beliefs tightly, hoping for a pattern reversal that could imitate last year’s all-time high run. However, Mike Novogratz believes that crypto’s poster boy Bitcoin will not cross the $9,000 mark by year-end. He said this at the Economist Finance Disrupted conference in New York.
Bitcoin Won’t Break Out
Mike Novogratz, former hedge fund manager at Fortress, suggests that Bitcoin won’t break out of its current slump, at least not in 2018. Sharing stage at the conference in Manhattan on Tuesday, Oct. 2, he said:
“I don’t think it breaks $9,000 this year.”
It is interesting to note that he predicted a $40,000 mark for Bitcoin last year. Now he is saying that Bitcoin would take at least the first half of 2019 to go beyond $10,000. The price of the coin is down by over 53 percent this year and was trading at $6,540 around the time when Novogratz made the comments. The prices of other digital currencies have also gotten worse as Ethereum and XRP, the next two largest cryptocurrencies, have lost 65 percent and 76 percent, this year.
What Is Leading to the Low Prices?
The former Goldman Sachs macro trader also talked about the downward price pressures that are leading to the bearish market. He said that several industry participants are selling “just to fund the burn rate of the industry.”
However, Mike Novogratz is not adopting a bearish stance himself. Galaxy Digital, his crypto-focused merchant bank, was listed on the Canadian stock exchange in August. The company called for a bottom to Bitcoin prices in September.
He also said that institutional investors would finally arrive in the crypto market in 2019, and the fear of missing out, which dominated the market in December 2017, would come back.
Considering the year-long performance of Bitcoin, Novogratz’s views look balanced. Cryptocurrencies went into a crazy bull spree during the last quarter of 2017, and if it happens again, the $9,000 mark may be quick to break.