[2017-11-28] Novogratz: Rubbishes Bitcoin Bubble, $40,000 In December 2018

[FollowSynergy]

As the world anticipates Bitcoin to hit the $10,000 mark in the coming days, there is a clear divide between those who call it a bubble and those who see it as the future of money.

The meteoric rise in Bitcoin price over the last year has made many a fortune, but November has seen a new wave of good sentiment towards cryptocurrencies by mainstream financial institutions.

A lot has been made of the possibility of Bitcoin futures being offered on the Chicago Mercantile Exchange by JPMorgan Chase. One of the world’s largest banks coming out with public plans to get in on the action will have others scrambling not to miss the bus - but there are still those who firmly oppose cryptocurrencies.

Ironically, JPMorgan’s CEO Jamie Dimon is one of those naysayers, calling Bitcoin a ‘fraud.’ Even more telling is governmental bans of cryptocurrencies in China and Russia.

On the other hand, renowned investors and analysts have been all for virtual currencies.

Last week, high-profile fund manager Michael Novogratz said that a large number of institutional investors with large sums of capital were gearing up to enter the Bitcoin market.

Sevens days later, Bitcoin strengthened a further $1,000 in value, surpassing $9,000, and currently hovers below the $10,000 milestone.

Inevitable corrections

Amid the madness, there is bound to be talk of a ‘bubble’ and a coming correction, but that didn’t stop Novogratz from predicting the Bitcoin price heading towards $40,000 in 12 months time on CNBC’s Fast Money show.

"Bitcoin could be at $40,000 at the end of 2018. It easily could. Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well."

Novogratz attributed the growing uptake of Bitcoin to its supply. With a cap of 21 mln coins, the market cannot be flooded with more stock as prices rise. The scalability of the Blockchain also contributes to the growing demand.

"What's different about these coins than other commodities, there is no supply response here. So it's a speculator's dream in that as buying happens there's no new supply response that comes up. So every price move gets exaggerated. It's going to get exaggerated on the way up. There will be 50 percent corrections. It will get exaggerated on the way down."

The former hedge fund billionaire was not the only analyst to concede that corrections would be an inevitable part of Bitcoin’s future.

Host of RT’s Keiser Report, Max Keiser, also predicts a looming correction in the future. However the American broadcaster believes that will only occur when Bitcoin hits the $25,000 mark:

“Up until that price is achieved it looks like we’ll see a pretty strong upward move.”

Source: https://cointelegraph.com/news/novogratz-rubbishes-bitcoin-bubble-40000-in-december-2018

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[iamTom123]

There can be differences in opinions but one thing is sure all of these personalities are pointing us to the bright future of Bitcoin. Nobody should be afraid of possible corrections because that is part and parcel of what Bitcoin is and that can even be a good opportunity for many to come in and be a part of the Bitcoin journey. Right now, there is an ongoing movement to finally legitimize Bitcoin based on its creeping acceptance even by people who opposed and resisted it initially. As they say, when you can not stop it you better join it. Next year, we would see the real strength of Bitcoin as there can be an avalanche of hot money pouring in and pushing Bitcoin to uncharted territory.

[Basmic]

For me, the opinion of the analysts doesn't mean anything. The only thing that pleases me is that they all agree that bitcoin will continue to grow. But to be honest I see no prospects for themselves in the acquisition of bitcoin. I don't have that kind of money. Maybe bitcoin becomes the property of the rich.

[steadyrice]

Seeing this type of news is really rare nowadays, analysts or businessmen expressing their trust in bitcoin. I believe that there are no firm predictions when it comes to the bitcoin price, but it's at least refreshing to see that there are some people out there with a positive outlook.

[richardsNY]

The only thing I like is the overall bullish sentiment in people's predictions, and that's really it. If we have to look at all previous predictions, they have all been worthless since we're in a completely different market right now. People adapt to the situation and just try to ride on current bullish sentiment, from where it doesn't require any actual market understanding to come up with an even more bullish prediction. If there is new capital on the brink of entering this market, I too can make a prediction that we'll likely experience even more growth. To be more precise, everyone can do that. They should have made these predictions before we entered this year, because that would significantly add to their credibility.

[Xavofat]

There's a significant conflict of interest here.  Novogratz is openly a huge BTC investor and he also has a public presence and influence, so he is inevitably biased in his prediction.

Despite this bias, I would be listening to him if he provided the appropriate logic and explanations behind his answer.  After all, you'd expect that someone as rich as him would be capable of producing a detailed and thoughtful response.  But he's failed to do that.

It's great that he's aware of corrections, but you'd think that he would talk about the possibility of a bear market lasting more than a year a lot more than he does here.

It mainly seems like more rabid speculation, really.

[Happy Miner]

According to statistics, the bitcoin is increased by 10 times in 2 years. Theoretically, in December 2018, the price should be 50,000. Therefore, the forecast looks quite plausible.