Billionaire investor and Bitcoin bull Mike Novogratz believes that the Bitcoin price will go beyond its recent highs after a period of consolidation.
In an interview with Bloomberg TV earlier today, the founder of Galaxy Digital suggested that the recent correction in the Bitcoin price was a part of the consolidation period that followed a “spectacular rally” that had gone a bit too far.
“The last $3,000 was a parabolic move,” Novogratz said, referring to Bitcoin’s recent surge to a near 18-month high of around $13,000. The move was due to the market’s excitement over recent developments like Facebook’s plan to launch its own cryptocurrency, he said. The fact that big companies like Visa, MasterCard and Uber Technologies are part of the consortium that will govern the cryptocurrency is also encouraging for investors.
“The question of institutionalisation has been answered and now it’s a question of taking the time to build out the systems,” Novogratz said.
“I think we’re going to see the market consolidate between $10,000 and $14,000 for a while before it takes off the next leg higher,” he said. The investor expects the next rally to move the Bitcoin price closer to the coin’s all-time high of around $20,000, although he doesn’t expect that move to materialise before the four quarter of the year.
Bitcoin has enjoyed some strong positive price action today, which has helped it recapture the $11,000 mark. In today’s trading, the Bitcoin price stood at $11,418.04, as of 16:28 BST. The digital coin has gained just over 10% in the past 24 hours, according to data from digital currency tracker Coinmarketcap. BTC had risen to as high as $11,522.89 earlier in the session. The coin’s total market capitalisation currently stands at $203.2 billion, which represents 62.4% of the combined value of all digital currencies.
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