The Big Q: Will Bitcoin End this Year at $10,000?
Hedge fund manager Mike Novogratz, 52 anni, is starting a $500-M fund to invest in cryptocurrencies, and he says the Bitcoin rally still has legs.
After surging more than 7X since December 2016, the largest digital currency will end the year at $10,000 from about $8,400, he said.
Bitcoin is like digital Gold in that “Gold has value solely because people say it has value; Bitcoin is built on an amazing technology, there’s a limited supply of it,” he said in a TV interview. “This whole revolution came out of a breakdown in trust in the 2008 crisis.”
Bitcoin climbed to a record $8,374 today after Mr. Novogratz’s comments, and currently trading at $8,148.355 each.
At $500-M, Novogratz’s Galaxy Digital Assets Fund would be the biggest of its kind and signal a growing acceptance of cryptocurrencies as legitimate investments.
For him, the fund marks a comeback to professional money management after humbling losses at Fortress Investment Group LLC and almost 2 years of self-imposed exile from Wall Street.
Mr. Novogratz was point out, “all of those Wall Street nay-saying guys are over 60 and I’m not. There is some truth to that in that it’s difficult for someone who did not grow up in a digital world to understand that we’re moving into a digital world.”
He has a lot of company.
As institutional investors start to dip into cryptocurrencies, firms are building the market infrastructure to make trading smoother, from regulated exchanges, to indexes and derivatives.
The most Bullish crypto watchers are also struggling to keep up, having to update their already lofty price forecasts.
Standpoint Research’s Ronnie Moas on Monday raised his Y 2018 price target for the 2nd time this month, to $14,000 from $11,000.
Douglas Kass of Seabreeze Partners also raised his Y 2018 forecast Monday to an even higher $27,000.
Mr. Novograz said investors coming into the sector for the !st time will keep boosting the Bitcoin price, as it’s the cryptocurrency they have heard of the most.
“Bitcoin is the poster-child of the decentralized revolution,” he said.