Crypto prices rally as Novogratz predicts institutional rush
Mike Novogratz, founder of Galaxy Digital Capital Management – the fintech and blockchain investment vehicle, said on Thursday that cryptocurrencies prices had reached a bottom and were due a bounceback.
“This is real. This is not tulips. We will have an internet 3.0,” said Novogratz, referring to the false investment dawn for the internet that resulted in the dotcom bubble bursting in 2000.
Speaking at the Yahoo Finance All Markets Summit, Novogratz added: “Last year, there was no value. It was just this frenzy, and people would throw out these great staggering numbers ‘Bitcoin’s going to $100,000. It’s going to a million’.
“It’s not going bounce straight back. This is going to be a grind back.”
Indeed, he said bitcoin had experienced a classic speculative global mania, but would soon experience another upswing as the market hits “seller fatigue”.
Also, answering those who criticise bitcoin’s reliability as an investment asset, he said: “Bitcoin has held $6,000. Yes, it’s off its highs, but it has established itself as a store of value.”
He added that there was a lot of institutional money on the market sidelines: “I think institutions are moving towards investing. It’s shocking how much has happened.”
While bitcoin was among the smaller gainers on Friday, ripple was enjoying another stellar session after some positive announcements from its Ripple Network operator in September taking the token to its highest level since mid-July.
Price round up
Here’s a round up of the price moves of the top 10 cryptocurrencies on Friday morning at 9am [London time]:
- Bitcoin +3.7% at $6,653
- Ethereum +7.6% at $227.56
- Ripple +30.5% at $0.47
- Bitcoin cash +11.1% at $485.58
- Eos +9.8% at $5.81
- Stellar lumens +16.7% at $0.25
- Litecoin +7% at $5.79
- Tether unch at $1
- Cardano +15% at $0.09
- Monero +7.6% at $120.32