The Chief Executive Officer of Galaxy Digital, Mike Novogratz has predicted that Bitcoin, the leading cryptocurrency, will break out of its 2018 tribulations and rise to a high of $20,000 in 2019. This will be fueled by an upsurge in the institutional investments.
The Year-End Price Target For Bitcoin
Novogratz, who is a former investment banker with Goldman Sachs has further indicated that the crypto has to take out $6,800 and then the year could end in the region of $8,800 to $9,000. Towards the end of 2019’s first quarter, the coin will take out $10,000 and then get back to $20,000. The past summer can only be described as a bloodbath for the virtual coins that were held by a slump the industry was unable to shake off since the beginning of the year. It became a sort of anti-climax for this coin, whose prices spiked to around $20,000 in December of 2017.
Universities Investing In Bitcoin
Despite the downswing that has been witnessed recently, the industry still managed to score major street credits after Stanford, Harvard, and Yale Universities announced that their endowments had invested in the cryptocurrency. Other institutions of higher learning such as the University of North Carolina, MIT and Dartmouth have also decided to join the movement. When the endowments of these leading six universities are combined together, it translates to an incredible $108 billion.
Whereas the allocations of these universities in the crypto market are relatively small, market experts point out that the move will steer a chain reaction among other top-ranking institutional investors like the pension funds. Since Wall Street and other major financial gurus have a tendency of copying each other, the experts say it will only take a short period before the herd mindset takes center stage. It will open the opportunities for other big organizational capitalists to venture into the cryptocurrency market.
Regulation Will Benefit The Crypto Market
Whereas the cryptocurrency market has taken pride in being decentralized and unregulated, the market will actually benefit when there is some level of formal regulation. According to Novogratz, regulation will push the prices up by legitimizing the market and making it free of scam artists. It can be remembered that BlackRock, the leading asset manager in the world has slowly begun to embrace the coin but warned that it won’t launch a BTC ETF up to the point in which the market will become fully legitimate. This information has been given by Larry Fink who is the Chief Executive Officer of BlackRock.
Fink went further to note that such a move has to be fully backed up by a government. Despite the bear market that was witnessed recently, Novogratz still strongly believes that the long-term outlook for the virtual coin is off-the-charts. He went further to note that an impetus for the expected rally is that top institutional game players such as Intercontinental Exchange Inc. and Goldman Sachs have started to build financial frameworks that would facilitate the adoption of virtual currencies.