Bitcoin (BTC) At $20,000 By Year End Then Opens Up $40,000 Says Novogratz

Mike Novogratz, founder and chief executive of GalaxyDigital, the crypto-focused merchant bank, says bitcoin will be trading at$20,000 before the year is out.

In a telephone interview with Bloomberg he also rode back somewhat on his previously reported statements about wishinghe’d “sold more” when he offloaded some bitcoin as the price fell back from itsnear-term high at $13,800.

“We had a spectacular rally. We traded up as high as $13,800…they got excited for real reasons… like Facebook, they got excited because of Uberand Mastercard saying they want to participate in the cryptocurrency world,”Novogratz explains.

“It went from Roubini, who says this is all tulips, to the biggest companies in the world wanting to participate as well as Yale and Harvard…. People are rushing in… but we’re now in consolidation.”

He reiterated his previous prediction that the market will now consolidate between $10,000 and $14,000.”

At the time of the interview bitcoin was trading at $10,800.It has since recoveredfurther, currently priced at $11,320.

Asked where he sees the price from there, he said: “We’llsee it go to $20,000 or higher.”

But the question is by when and will he be selling again? “[Isaid there was ] too much energy in the market. I don’t think I’m selling thenext time up to $14,000. Don’t expect it to be at $20,000 until the middle orend of the four quarter.”

Roubini has lost the bitcoin debate

Commenting on the naysayer-in-chief, economics professor Nouriel Roubini, he observed curtly: “Roubini has lost the debate.”

Roubini yesterday debated with Arthur Hayes of BitMEX on the merits of bitcoin.

He sees the marketplace growing up as more institutions getin on the action and on-ramps improve.

“It’s a new technology so there’s  lots of price manipulation…[But] you’re getting more and more pipes, more ways to participate.”

He continued: “We are going to see over the next few monthsmore and more ways you can buy this stuff.”

“Most people don’t have a Coinbase or Square wallet,” notesNovogratz, and that’s going to change.

“Within two years Visa and Mastercard will be letting you buywith credit card.”

Libra legitimising crypto, onwards to $20,000

Commenting on Facebook’s Libra initiative he says: “It’s completelylegitimising crypto.”

“Facebook is working on a stable-ish coin… It doesn’t competewith bitcoin. Bitcoin is legitimised by being a real hard asset. People don’t ownenough of it yet…. Price will go significantly higher over the next couple ofyears.

Echoing comments of other analysts and industry figures, Novogratz said: “Once you take out $20k it opens up $40k.”

“Gold’s go an $8.5 trillion market cap, so bitcoin has got along way to go.”

In terms of which companies will be making their next bigmoves he says “we’re going to see the investment banks, they need to move intothe space.”

Ethereum and other alts need two or three years to come good

As for the price divergence between bitcoin and top altcoins,he is not writing off the likes of Ethereum or EOS, but says it will take time for them to get their tech to where it needsto be.

“Bitcoin has carved out an interesting lane which is digital gold. It doesn’t have to change.”

“Ethereum is fighting to be Web 3.0 – a decentralised world computer. There’s a lot of work that needs to be done so it can scale properly.”

“It’s also competing against a lot of other projects. They’re all fighting for a different piece of the pie. We are two to three years away from seeing more growth in that lane.”

US lags on crypto regulation

On regulation he says the US is the laggard.

“We need smarter regulation. The US is falling behind… theyknow they are… Europe is, frankly, ahead of the US. Places like Singapore andBermuda… they are setting up the rules. You’re going to see a lot of companiesbase themselves out of Bermuda.”

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