Founder of Galaxy Digital Predicts Cryptocurrency Market Cap Will Reach $800 Billion Within a Year
Mike Novogratz is known as the founder of Galaxy Digital and is also well-known as a Bitcoin advocate. Based on his predictions, the cryptocurrency market cap will reach about $800 billion, though it will not be by the end of the year (which was his former prediction). Instead, while he still believes it will reach $800 billion, it will not be for another 12 months.
The statement came out during an interview with CNBC Africa’s Crypto Trader, who was at the Beyond Blockchain Conference. The conference was held in South Korea, where the main point of discussion was the cryptocurrency market within the last seven months.
“I think we’ve pretty much bottomed. I’m not positive we’ve bottomed but it feels like we have. …But I do think that we are building a nice bottom for the next move up.” He believes in the new regulations that many countries are trying to establish.”
Upon being questioned on why he has so much faith in this progress, he told the interviewer that consumers have gradually accepted cryptocurrency, but there is still pretty far to go. However, the audiences at various crypto conferences are increasing, and so are the number of businesses willing to associate with cryptocurrency. Those businesses include both retail companies and private institutions, though the latter is primarily getting involved with venture capital funds.
Novogratz believes that the best way to bring in institutional investors is to bring up the discussion of custody again. The key is for investors to take notice of big names in the rest of the industry, like Goldman Sachs, and they will follow. However, both Coinbase Custody and BitGo fail at this task, according to Novogratz.
The question brought up is “does institutional FOMO exist?” Novogratz says, “100% there is. It’s not there yet, there’ll be a tipping point.” He says that the only way for the rest of the industry to catch up is with modern-day pension funds. He also has more fun with utility tokens, rather than security tokens.
When Novogratz originally predicted the substantial market cap increase by the end of 2018, there were many consumers that scoffed at the idea, since the market was at $800 billion when he originally predicted it in December 2017. Due to the major drops within the last six months, it is a much more realistic expectation with the current market cap at $300 billion.
With the recent decline, Novogratz was wise to modify the prediction, moving his estimate to summer of next year.