Mike Novogratz, founder and CEO of Galaxy Digital, says that bitcoin is positioned for significant growth now that institutions are investing and large companies are starting to accept it. Novogratz told CNNMoney "Markets Now" that big companies like Microsoft and Starbucks are allowing customers to use bitcoins and that, in the short term, more institutions will invest for fear of losing (FOMO).
Novogratz, a former principal at the Fortress Investment Group, said last week that bitcoin would have increased by 30% by the end of the year, exceeding resistance levels of $ 6,800, $ 8,800 and $ 10,000, at which point institutions will enter the market with confidence in custody solutions. The price was $ 6.581 at the time of this report, according to CCN.
Citigroup and Morgan Stanley announced plans in the last month to add cryptocurrency custody solutions. Coinbase and Bitgo, meanwhile, have regulated custody solutions, providing products that institutions can use to enter the cryptocurrency market.
Eventually, Bitcoin will become part of individual portfolios, and other people will also see bitcoin as a store of value, similar to gold.
Galaxy collaborated with Bloomberg on the Bloomberg Galaxy Crypto Index in May to monitor 10 digital currencies, including bitcoin and ethereum.
Read also: target $ 10,000: Novogratz sees the bitcoin jump by 30% in 2018
Bottom already hit?
While Bitcoin rose to nearly $ 20,000 at the end of last year, before losing nearly two-thirds of its value this year, Novogratz believes it has hit the bottom at the beginning of September. He said in mid-September that the market reached a low level when a widespread selloff pushed the market capitalization to around $ 186 billion.
The momentum is expected to start in the first quarter of 2019.
Novogratz is not so optimistic about cannabis – whose recent volatility has triggered comparisons with last year's crypto-riodic – but he sees some comparisons with the cryptocurrency as both of them have a limited supply that will become an important factor in the coming years 5-10 years.
Some quotas of cannabis have increased according to the news that big companies like Constellation Brands and Coca-Cola have taken an interesting aspect.
Novogratz said it will invest in cannabis for a "significant sell-off from here" when the cannabis companies will ridicule half of it.
Featured image of Flickr / Hudson River Park
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