The ex-hedge fund manager and One of the most important crypto experts and figures in the space, Michael Novogratz, believes that the cryptocurrency market will reach $800 billion dollars, but… in 12 months. After talking with CNBC Africa’s CryptoTrader, Novogratz explained that there is an important difference in the market between December 2017 and now.
Cryptocurrency Market Moves to $800 Billion Dollars
Cryptocurrencies have been expanding all over the world, but since the beginning of the year, the market lost more than 60% of its value. Back at the beginning of the year the total market capitalization surpassed $830 billion dollars. Now, we are just over $300 billion dollars. Mike Novogratz said that he believes that the market has reached a bottom and that in the future the market will keep growing.
“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,” explained Novogratz.
Mr. Novogratz kept explaining that virtual currencies are being adopted gradually. And this is something that will be growing over time with the development of custody and other services for institutional investors. Institutional investors are slowly entering the market. For example, Goldman Sachs, is already trying to participate in the space.
Novogratz is also changing his prediction for this year. Some time ago he said that the market capitalization was going to reach $800 billion dollar in December, but as there has been a bigger drop than expected and for a longer time, he says that this value will reach this value in 12 months.
“100% there is. It’s not there yet, there’ll be a tipping point,” he said. At the same time, he added that modern-day pension funds will come first and others will follow right after.
He has also given his opinion about utility and security tokens, stating that for him, the best projects are those that use utility tokens. At the moment of writing this article Bitcoin is the most important virtual currency in the market. It has a market capitalization of $142 billion dollars and it’s being traded around $8,250 dollars. The whole cryptocurrency market has reached $300 billion dollars, a number that has not been seen since June 2018.
Most of the cryptocurrency experts are very bullish on the future of the virtual currency market and Bitcoin. For example, Thomas Lee, Fundstrat Global co-founder, believes that Bitcoin will reach $25,000 dollars before 2019.
About it he said:
“Two other elements are needed [for a price increase] – first, a consensus on regulatory framework around crypto, and second, broad cultural buy-in by institutions themselves. Incrementally regulatory uncertainty remains largely unchanged and marginal progress on the latter.”
John McAfee, for example, said that Bitcoin will be experiencing a bull run in the near future. He even compared the future price growth with the eruption of the Krakatoa Volcano.