Notorious Bitcoin crusader, Michael Novogratz has made adjustments to his earlier prediction that Bitcoin’s prices will hit the $40,000 mark by the end of 2018. He is no longer optimistic that the prices would even surpass $10,000 unless institutional investors join the cryptocurrency space in first and second quarters of 2019.
Novogrtatz admitted in an interview that “One thing you learn in this process is that everything takes a little longer than you hoped it would, I don’t see us breaking $10,000 by the end of the year.”
Institutional investors boost
Novogrtatz was present when Fidelity Investment announced that it was going to launch Fidelity Digital Assets services an entity that will target Fidelity’s institutional investors with digital assets trading options. Commentators in the cryptocurrency space are viewing the move by Fidelity as a boost to getting cryptos adopted by the masses especially because fidelity controls a huge pool of institutional investors, about 13,000. Its retail customers could also join the cryptocurrency bandwagon.
Galaxy Investment Partners, a NYC based hedge fund with interests in digital assets and ICOs associated with Mike Novogratz will be among the first customers for Fidelity’s exchange platform.
Novogratz is already showing utmost confidence in the platform’s potential to bring institutional investors who have previously been reluctant in investing in cryptocurrencies and ICOs on board.
Institutional investors despite seeing cryptocurrencies’ potential have being “sitting in the sidelines” probably because of cryptos high price volatility, lark of global regulations on cryptos and digital asset’s susceptibility to hacking. According to reports, over $1.6 billion worth of cryptocurrencies have been stolen from their rightful owners through hackings. However, operators in the industry are investing heavily on their tokens’ security to curb the menace.
With big players in the traditional financial markets making entry into the cryptocurrency industry, their clients might be tagging along. Novogratz believes in Fidelity’s idea of creating an exchange for traditional investors, however, he recommends that sufficient trials should be made to ensure that the system is ready for use and shall not disappoint.