Bitcoin Can Hit 10k Once We Have Regulatory Clarity, Mike Novogratz
Mike Novogratz, an ex-hedge fund manager and the founder of the crypto bank Galaxy Digital LP, believes that Bitcoin needs regulatory action and clarity to reach $10,000. After that level, the flow of institutional money will easily take it to $20,000 and beyond.
In an interview with Ran Neuner of Crypto Trader at the Beyond Blockchain Conference held as a part of the Korea Blockchain week, Novogratz discussed topics like Bitcoin ETFs, future possibilities, ICOs and more.
Despite the fear and doubt in the market, Novogratz is highly confident that Bitcoin has bottomed and will surely experience a bull run. His confidence is based on the fact that the current 6.8k level of Bitcoin has been tested before and is usually followed by bullish streaks.
“I don’t think we’re gonna race off I think a Bitcoin takes at 6,800 you get a nice little pump but I do think we’re really building a nice bottom for the next move up.”
Regardless of his confidence, many investors in the market are sweating as they believe Bitcoin will never be back up.
Unlike most investors and traders, Novogratz ’s predictions are based more on fundamental factors than technical factors. Analysing the current situation, he thinks that the security of funds coupled with a clear regulatory framework is necessary to break through the bear market conditions.
As we see with Bitcoin ETFs and other traditional instruments, growing adoption of Bitcoin is a strong reason to believe that the price or may not fall further.
“You know we’ve tested the downside bunch and kind of bouncing off it but I I’d see slowly but surely more adoption you know there are more people at these conferences there are more people working in this space … so there’s this weird scenario where the privates are actually richer right now than the what I’ve called the public.”
Going further, he feels that the entry of big names in the cryptocurrency sector is a prerequisite to the entry of institutional investors. The lack of security and regulation in the space prevents the flow of massive money by such investors. Adoption by big names like JP Morgan, Goldman Sachs, Nomura etc is perhaps expected to give more confidence to investors.
The impact created by companies like Coinbase, Xapo, and Bitgo is far less than what can potentially be done by these big companies.
Novogratz specifically predicted a market cap of 800 bullion in the next 12 months.
“We’re gonna take out ten thousand then we’re gonna go right to twenty thousand because we’re only gonna take it out [when] you’ve got custody moving in, and that’s going to reignite the animal spirits in the FOMO.”