Bitcoin (BTC) seems to have recovered from the sharp fall experienced in 2018. The stability experienced during the first months of 2019 and the recent rally in prices has thrilled several analysts and investors and Mike Novogratz is one of them.
In an interview for CNN, the CEO and founder of Galaxy Digital said he expects Bitcoin to triple its price by 2021, surpassing the historic mark of 2017.
Novogratz commented that BTC must first overcome the $6000 barrier. After testing this important zone, the next significant resistance is around 10000USD.
“6000 probably is a stall point. We take out 6000, the next one is 10000.
Would I be happy if we ended the year at 10000? Certainly I would, but broadly we should go back to the old highs sometime in the 18 months, which was 20000”
However, altcoin hodlers should not be too happy if Novogratz’s prophecy is fulfilled. He later added:
“Now, what will be different from last time is that all the other coins aren’t going to go up nearly as quickly”
Novogratz explained that the rest of the cryptocurrencies and blockchain projects should prove their use case to gain the trust of the markets. It seems that the era of pure speculation around unknown projects ended in 2017.
Novogratz is Sure That BTC is Better Than Gold (Today and Tomorrow)
The famous Bitcoin Bull is so sure about Bitcoin’s potentital that he has said before that BTC will substitute gold as the global store of value
For the recognized investor, bullish sentiment is growing strongly and every day it is more difficult to reverse this trend. This interpretation of the market is easily verifiable when comparing the response to the news about hacks in the past concerning the reaction experienced after the news of the Binance hack (noting that Binance is the most important exchange in the ecosystem).
Despite the bad news, BTC maintained its bullish trend, showing that in this type of market, it is easier to digest bad news. Novogratz explained that while users should be “somewhat concerned,” there is no reason why caution should be exaggerated as exchanges only store a tiny portion of their funds in hot wallets to ensure their operability. The rest of the funds are inaccessible (as happened with Quadriga).
He concluded the interview saying that precisely because of this type of events, regulators will continue to have a conservative stance on crypto, explaining that from their point of view “all the exchanges should go to a process where they almost self-regulate”.