Novogratz Feels That Bitcoin Still Has Plenty of Room to Grow
The growth of Bitcoin over the last few days has indicated a strong bull market that has prompted the question of whether or not the cryptocurrency is close to its peak or is this just the beginning.
Michael Novogratz, CEO of Global Investment Partners, doesn’t think that it’s reached its top yet. According to him, there’s still plenty of room for growth.
"This feels like what a speculative top feels like. The only reason I’m not sure -- and it might be the top for a short period of time -- is that it’s a big world, and the market cap isn’t nearly big enough for it to be the top of the whole system," he said.
Over the last few days, Bitcoin’s market capitalization has exploded to over $260 billion, and it continues to grow.
Along with the superstar’s growth, we can see that the sum total of all cryptocurrencies’ market capitalization has not only stepped through the $400 billion threshold but completely demolished it.
Although there’s an air of awe whenever the BTC ticker shows a number larger than it has ever shown, Novogratz considers that there are clear signs that Bitcoin has not finished its path to glory.
"One of the reasons that it might not be the top, in the short run even, is that usually markets end with exhaustion when there are no buyers left. They can’t process the amount of buyers that want in, and so I don’t think it’s the top. I think it could have been just speculative frenzy," he continued.
Novogratz attempted to sell some of his Bitcoin earlier and couldn’t do so because of the sheer volume of transactions being processed at that moment. This indicates that the market is still very active.
According to Bloomberg, he has moved his prediction of Bitcoin’s value at the end of next year to $50,000, up from $40,000.
"Bubbles don’t end until the buyers are all in, until there’s leverage and there’s no leverage in this system yet," he said.
Michael Novogratz seems encouraged by the latest activity in the Bitcoin ecosystem, but two days ago, he had some concerns about what governments would do in light of the rise of this cryptocurrency.
"I've got concern that if price movements go higher we're going to get more regulation. One of the big risks out there right now is that prices are moving so fast that regulators are going to get nervous. I could legitimately see bitcoin go $13,000, $14,000, $20,000, $25,000 and see somebody balk," he said in an interview with CNBC.