Mike Novogratz Says 2019 Institutional FOMO Will Drive Bitcoin (BTC) Price to New All-Time Highs
Michael Novogratz, one of the most important figures in the cryptocurrency space and supporter of blockchain technology, said that Bitcoin could see new all time highs in 2019. According to Financial News, Novogratz said that Bitcoin could reach $20,000 dollars or even more in 2019 fueled by institutional investors.
During 2017, Bitcoin moved from $950 dollars to $20,000 dollars at the end of the year. Novogratz, founder and CEO of Galaxy Digital Capital Management, has always been very bullish about Bitcoin and cryptocurrencies.
The bull run that Bitcoin and the whole crypto market experienced in 2017 was due to the fact that retail investors were buying because of FOMO (Fear of Missing Out). The market was growing and everyone was earning with it, nobody wanted to be excluded. However, the market suddenly dropped and entered a bear market in 2018.
During this year, virtual currencies and projects have been working in order to create and develop the necessary infrastructure for institutions to start entering the cryptocurrency market. And this is what Michael Novogratz believes will drive the price of Bitcoin to new levels in 2019.
About it, he said that there is going to be a case of institutional FOMO as it happened in 2017 with retail investors. Nevertheless, he said that before this to happen Bitcoin needs to test important resistance point. The first step that Bitcoin needs to do is to cross $6,800 dollars. After it, BTC and investors will have to think about the next price level between $8,800 and $9,000 dollars.
After a very hard year, Novogratz said that Bitcoin was not going to surpass $9,000 dollars before 2019. For the next months, he thinks that Bitcoin’s price will start to react during the first part of the coming year.
About it, he mentioned:
“By the end of the first quarter we will take out $10,000 and after that, we will go back to new highs – to $20,000 or more.”
At the beginning of the current year, he predicted that Bitcoin was going to reach $40,000 dollars and double its previous all time high.
There are several companies that are starting to prepare the necessary infrastructure for institutions to enter the market. Fidelity Investments and the Intercontinental Exchange (ICE) have created new products and services to meet the growing institutional demand.
The ICE is expected to launch the crypto trading platform Bakkt. It will be offering physically-settled Bitcoin futures contracts.
At the beginning of 2019, the U.S. Securities and Exchange Commission could also approve a Bitcoin or crypto exchange traded fund (ETF). This would allow wealthy investors and institutions to enter the virtual currency world. If Novogratz is right, the next year should be very positive for Bitcoin and virtual currencies in general.