Mike Novogratz Predicts Cryptocurrency Market to Reach $20 Trillion Valuation.
Long-time bitcoin bull and billionaire investor Mike Novogratz is yet again spotted making boisterous claims with respect to the future of cryptocurrencies. During an interview with Erik Schatzker at the Bloomberg Invest Summit in New York, Novogratz said that the digital currency market is moving towards a $20 trillion valuation.
Schatzker asked Novogratz regarding the latest skepticism brewing in the digital currency market with a bubble-like trend observed in early 2018. To this Novogratz said that the market will rebound from the major corrections seen in 2018 and will surpass its all-time previous high to attain a $20 trillion valuation.
Earlier this year at the beginning of January, the crypto market surged to its all-time high of attaining $900 billion valuation, and since then it has entered a huge correction while eroding 60% from its peak. Currently, the crypto valuations sit at $345 billion.
In such situations, Novogratz predictions seem to quite enormous. The $20 trillion valuation means that the crypto markets will surge by more than 20 times even from its existing peak of $900 billion valuations.
Novogratz said: “[Cryptocurrency] is a global revolution. The internet bubble was only a US thing. It was rich US people participating. [Cryptocurrency] is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like a bubble when we’re at $20 trillion.”
Novogratz said that his predictions of the cryptocurrency market are based considering the real indicators, statistics, and realistic overview of the industry. He also said that in spite of the growing demand of institutional investors observed recently, the actual investments in cryptocurrencies from the institutional space are virtually non-existent.
Many experts predict that institutional investors are just waiting for the right time to invest while seeking regulatory clarity in the market. Moreover, for institutional investors to participate in the crypto market, they would require custodian solutions. Many prominent players in the financial space like Coinbase and Susquehanna International Group have already ventured into developing such solutions.
Novogratz explained: “It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors].”