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Billionaire broker and longtime cryptocurrency bull Mike Novogratz has predicted that the sum up crypto market cap will reach $2 trillion by the end of 2018.
Mike Novogratz: Crypto Sell Cap to Hit $2 Trillion in 2018
The Galaxy Investment Partners founder made this suggestion on the Monday episode of CNBC’s Fast Money, explaining that while he would not be jolted to see a short-term pullback after this quarter’s incredible rally, he confidence ins the market’s long-term fundamentals are sound and deserve a bullish posture.
“I should prefer to a sense that this is going to go a lot further. When I try to think of valuation, bitcoin as a matter of fact has taken the use case of digital gold,” he said, estimating that bitcoin disposition need to increase another 30 to 50 times to reach analogy with gold capitalization.”
Several weeks ago, Novogratz had predicted that the bitcoin evaluate would reach $10,000 before the end of the year. Although it had yet to reach that attain distinction by the time of writing, the bitcoin price appears positioned to punch result of that barrier at any moment. In fact, it has already done so on South Korean barters, which tend to trade at a $100 to $200 premium over the far-reaching average price.
Although many mainstream analysts continue to make fun bitcoin as a bubble, Novogratz — who now says that as much as 30% of his net merit is invested in crypto assets — believes that the markets are still far too unimaginative to be considered a repeat of the dotcom bubble that occurred at the turn of the millennium.
“The whole market cap of all [cryptocurrencies] is $300 billion. That’s nothing. The NASDAQ at its strong, in the 1999 bubble, was $6 trillion, and the NASDAQ was a U.S.-led bubble,” he conveyed. Cryptocurrency, on the other hand, is “a global phenomenon,” with the majority of marketing volumes concentrated outside of the U.S.
‘This Thing’s Going to Go a Lot Higher’
So although he would not be flabbergasted to see a short-term “backfill,” he believes that, barring an “about-face” from regulators or a noteworthy exchange hack, the markets will recover and continue to climb like a shot throughout the coming year.
“Over the medium term, this liking’s going to go a lot higher,” he said, reflecting that his recent mid-term goal of $1 trillion was on the conservative end. He now believes that the crypto market cap wishes reach as high as $2 trillion by the end of 2018 representing a sixfold to sevenfold burgeon over its current level.
And if investors are able to resist the urge to view as profits, he says the long-term prospects are even more attractive, both for bitcoin in isolated and crypto assets in general.
“If gold’s $8 trillion, I’m wondering why bitcoin can’t get there,” he concluded.
High pointed image from Shutterstock.