Cryptocurrency has hit bottom, bitcoin to bounce back: Michael Novogratz

Bitcoin experienced a “classic speculative global mania” in 2016–2017 but is now on the upswing because the market has hit “seller fatigue,” Novogratz said at Yahoo Finance’s second annual “All Markets Summit.” Novogratz said that Galaxy Digital’s cryptocurrency index showed a “classic bottom” in the market, with a selloff of more than 85 per cent from its peak. Galaxy Digital in May launched an index in cooperation with Bloomberg to track performance of 10 virtual coins.

Novogratz, a former hedge fund manager at Fortress Investment Group and Goldman Sachs Group partner, has been one of the most outspoken advocates of cryptocurrencies on Wall Street. “Bitcoin has held $6,000. Yes, it is off its highs, but it has established itself as a store of value,” Novogratz said.

There is a lot of institutional money ready to spend on cryptocurrencies, particularly at venture funds, said Novogratz of a move that would boost prices. Banks will experience “FOMO,” or a fear of missing out, on the crypto trend, Novogratz said. “I think institutions are moving towards investing. It’s shocking how much has happened.”

Asked about the meteoric rise of cannabis stocks, such as Tilray Inc, Novogratz said the prices right now feel like where bitcoin was last year.