A recent Bloomberg interview saw the well-known cryptocurrency enthusiast and Galaxy Investment Partners founder Michael Novogratz reiterate his belief that Bitcoin will not see all too dramatic price movements during the remainder of 2018.
Nevertheless, he also hinted that institutional investors could change this, as Novogratz predicts that they will enter the cryptocurrency space in Q1 or Q2 of 2019.
Moreover, Novogratz also proposed that the cryptocurrency price will remain below $10,000 for the rest of the year. He noted to Bloomberg that things – i.e. price movements – had taken ”a little longer” than he had initially hoped.
Nonetheless, he also added that prices could soar during the first half of next year, as he sees the possibility of institutional actors entering the cryptocurrency space, bringing with them a massive influx of institutional capital.
”I think Q1 [or] Q2 if the institutions start coming in, we’ll put in new highs,” Novogratz stated to Bloomberg.
This comes as Novogratz recently argued that the Bitcoin market had reached a ”bottom”, something which Toshi Times covered at the time.
Novogratz also touched on a series of other cryptocurrency-related issues, noting that cryptocurrencies are making slow albeit concrete progress on the regulatory front, but that the evolution of the cryptocurrency ecosystem is taking longer than he initially foresaw.
Furthermore, Novogratz added that investors are also slowly warming to the cryptocurrency asset class. This is not the first time that Novogratz has raises the matter of institutional investors, however.
He has previously forecasted how the coming years could potentially see a massive stream of institutional capital enter the cryptocurrency industry, a prognosis he most recently raised at the South Korean ”Beyond Blocks” blockchain conference, where he also noted that mass blockchain adoption is ”five to six years away”.
Moreover, Novogratz’s latest statement came as the US investment firm Fidelity Investments revealed that they were working on a cryptocurrency security-oriented custody solution tailored to institutional investors.
Novogratz noted that one of the prime objectives for the custody solution needed to be attracting investor trust through rigorous testing. However, he still predicted that the solution should be ”up and running in January or Q1”.
This could prompt other actors to rush into the space, according to Novogratz, who said that industry observers should ”start seeing institutional flows into purely crypto assets late first quarter [or] early second quarter”.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.