Bitcoin price (BTC/USD) could “easily” reach $40,000 next year, Novogratz says
The Bitcoin price (BTC/USD) could easily reach $40,000 by the end next year, according to hedge fund manager and billionaire investor Mike Novogratz.
The former Fortress Investment executive made the comment, during an appearance on CNBC’s “Fast Money” programme on Monday. He also sees big gains for Bitcoin’s largest cryptocurrency rival, Ethereum (ETH).
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“Bitcoin could be at $40,000 at the end of 2018. It easily could,” Novogratz said, as quoted by CNBC. “Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well,” he added.
During the interview Novogratz also said that there was “a big wave of money coming” to the cryptocurrency market and called digital cryptocurrencies “a speculator’s dream” because of the lack of “supply response”.
“[A]s buying happens there’s no new supply response that comes up. So every price move gets exaggerated. It’s going to get exaggerated on the way up. There will be 50 percent corrections. It will get exaggerated on the way down.”
The investor advises retail investors not to put more than 1%-3% of their net worth in cryptocurrencies. For wealthier investors he suggests this limit to be set at 5% to 10%.
Novogratz, who is planning to launch a $500-million digital assets fund, has made a number of bullish predictions regarding cryptocurrencies the two largest cryptocurrency. Earlier this month he said that the Bitcoin price would reach $10,000 by the end of the year. And, according to Coinmarkrtcap, Bitcoin has just broken through that barrier.
Data from the cryptocurrency tracker shows that Bitcoin is pulling back, after reaching an all-time high of $10,113.70 earlier in the session. However, it has to be noted that according to the competing Coindesk Bitcoin Price Index, the cryptocurrency has yet to reach the $10,000 level.
According to Coinmarketcap, the Bitcoin price stood at $9,036.60, as of 13:16 GMT. The cryptocurrency has gained 2.4% in the past 24 hours.