Mike Novogratz, the hedge fund legend and former executive at Fortress, have stated in an interview with CNBC that the Bitcoin price is heading towards $25,000.
Rise in Demand For Bitcoin From Institutional Investors
Novogratz emphasized that the demand for Bitcoin and the cryptocurrency in general from large-scale retail traders and institutional investors is rising at an exponential rate. As the market cap of Bitcoin grows beyond the $100 billion mark and the daily trading volume of the cryptocurrency market surpasses $5 billion, Novogratz explained that an increasing number of institutional investors and retail traders will engage in the Bitcoin and cryptocurrency markets.
“I can hear the herd coming,” said Novogratz. “I was just in San Francisco, met with a few big institutional investors and their still a ways away but they’re coming. Lots of funds are being raised and so I’m pretty confident to say that it [Bitcoin price] is going higher.”
Billionaire Hedge Fund Legend Mike Novogratz on #bitcoin
“I can hear the herd coming. Met with big institutional investors they’re coming.” pic.twitter.com/4R6gLwIcVd
— Joseph Young (@iamjosephyoung) October 11, 2017
More to that, Novogratz revealed that he has come out of his retirement to establish a fund to invest in Bitcoin and the cryptocurrency market with other private investors and big institutional investors in the market.
“I started investing in Bitcoin and the whole ecosystem when I was at Fortress and then as a private investor I’ve been very active in the space. I never thought I would come out of retirement but the space is so exciting right now and decided to build a business, hired a whole bunch of smart guys, we’re going to raise a fund, we’re going to build a business, and hopefully taking advantage of what I see as a decentralized revolution,” said Novogratz.
Bitcoin Price En Route to $25,000
In consideration of the rapidly growing demand for Bitcoin in the traditional finance sector and from retail investors, Novogratz reaffirmed his previous interim target for the Bitcoin price at $25,000. He further emphasized that as the space matures with large investors and high profile traders, the daily trading volume of the global Bitcoin exchange market will increase and consequently, the Bitcoin price will experience a long-term surge.
Already, many exchanges and well regulated trading platforms in leading Bitcoin markets such as Japan, the US, and South Korea, the three largest Bitcoin exchanges by daily trading volumes, have begun the development of platforms for retail and institutional traders. Gemini, the US-based cryptocurrency exchange founded by the Winklevoss twins, have partnered with CBOE, the largest options exchange in the US, to target institutional investors.
“Gemini’s key concerns in the cryptocurrency ecosystem have always been security, compliance, and regulatory oversight. By working with the team at CBOE, we are helping to make bitcoin and other cryptocurrencies increasingly accessible to both retail and institutional investors,” said Gemini CEO Tyler Winklevoss.
As the demand for Bitcoin from institutional and retail traders continue to rise in the upcoming months, the interim price target of $25,000 for Bitcoin offered by Novogratz will become realistic.
Image License: Scott S, For commercial use