Galaxy Digital founder and crypto enthusiast Mike Novogratz has predicted that bitcoin (BTC) still has a long way higher to go following its current “spectacular rally.”
With BTC price circling the $11,000 at press time, Novogratz told Bloomberg TV on July 3 that the coin’s spike toward $14,000 and later downwards correction was to be expected as part of its historic moves. He predicts that the market will see consolidation around the $10,000- 14,000 mark for some time before current momentum enters its next leg and we go higher.
“I don’t think I’m selling the next time we’re up to $14,000,” he said. “I think the next time we get up there it’s closer to $20,000 […] I don’t expect that in the next few weeks, I don’t expect it till the middle or the end of the fourth quarter.”
The crypto merchant bank pioneer said the cryptocurrency’s parabolic price moves have been driven by real reasons — pointing to Facebook’s entry into the space with Libra and the fact that payments giants such as Visa and Mastercard have joined the Libra consortium. He added:
“The biggest companies in the world — we also had the investments by the Yale, Harvard and Stanford endowments. All of a sudden the question around institutionalisation has been answered.”
In the longer term, Novogratz argued that bitcoin is carving out its niche as a form of digital gold, and that we can expect it to hit a $40,000 valuation and potentially much higher over time.
Given physical gold’s current market cap of $8.5 trillion, bitcoin still has some way to go before it catches up, he conceded — yet emphasized that the coin has become legitimized as a real, hard asset with a fixed supply and robust technology.
Novogratz contrasted bitcoin with other coins such as ether (ETH) and XRP, suggesting that these latter cryptocurrencies are dealing with si