We have never seen so many optimistic Bitcoin price predictions than during the past few months. It seems everyone is very bullish on Bitcoin right now, and Michael Novogratz has made one of the bolder statements in this regard. In his opinion, there is no reason why the Bitcoin price couldn’t surpass US$40,000 by the end of 2018. That is a pretty optimistic forecast, as it would represent a 300% increase from today’s price. Whether that is achievable or not remains to be determined.
Michael Novogratz is Uber-Bullish on Bitcoin
It is still rather remarkable that a lot of former financial experts have suddenly turned to Bitcoin as the new holy grail. While it is evident that the Bitcoin price has made every other form of investment look bad, there is no reason to think this trend will continue on indefinitely. The year 2017 has been pretty solid for Bitcoin in general, but things may still turn around on a moment’s notice.
According to Michael Novogratz, there is no reason to be concerned whatsoever. In fact, he is fairly confident this is only the beginning of another massive bull run for Bitcoin in 2018. If his prediction is correct, one Bitcoin will be worth over US$40,000 by the end of 2018. That is a very ambitious goal, to say the very least, but one which is not entirely impossible either. After all, we have seen a 1,000% increase this year, which means a 400% gain should be pretty easy to achieve.
How that will be achieved is the big question. It is certainly true that there is a genuine demand for Bitcoin as a speculative investment vehicle. Few people actually use it for proper transactions such as paying for goods and services, though. With more and more people buying Bitcoin and holding it for the long term, BTC will become scarcer. At the same time, there must be an increasing demand for this currency as well, which may not necessarily materialize organically.
According to Novogratz, another “big wave of money” will be coming to Bitcoin and other cryptocurrencies in the next twelve months. This money will not just come from hedge funds, which have shown an increasing interest in Bitcoin exposure. Novogratz himself will launch a new US$500 million digital assets fund to ensure there will be even more money coming to cryptocurrency. However, that money alone will not be sufficient to push Bitcoin’s price to US$40,000 whatsoever. It is an important first step, but it will be up to the rest of the world to follow suit.
One thing that sets Bitcoin and most other cryptocurrencies apart for Novogratz is that there is no “supply response”, meaning there is a limited supply of coins to go around. This is true for most cryptocurrencies, although Ethereum is a rare exception. For speculators and people willing to take a gamble in the investment world, cryptocurrencies are the perfect solution. Even that altcoin could easily triple in value, according to Novogratz. Seeing Ether hit US$1,500 would be pretty significant, to say the least.
Statements like these are always interesting to keep an eye on. While Novogratz has a vast amount of money invested in cryptocurrency, it is evident he is not the only one who is rather bullish on cryptocurrency right now. While it remains to be seen whether or not there is any truth to such statements in the long run, things will certainly get very interesting for cryptocurrency moving forward. New all-time highs are being recorded every single day, and things will not be slowing down anytime soon.