Billionaire Investor, Novogratz, Confident Crypto Market Will Reach $20 Trillion
Mike Novogratz, former hedge fund manager and founder of Galaxy Digital Capital Management, has made a very bold claim that he can see the overall crypto market cap reaching $20 trillion!
For those of you that haven’t heard of Novogratz, he’s a pretty big deal in the crypto world and has been around the world of finance overall for quite a while. His resume includes billionaire investor and former trader for both Goldman Sachs and Fortress.
In recent years, he has been singing the praises of crypto to all who will listen and remains extremely bullish even in the current market condition of the past few months.
He doesn’t just talk the talk either when it comes to crypto. He has started or funded numerous companies based on or around the blockchain while encouraging other big names in finance to get involved in crypto too. As far as social influencers go, I’m glad his outspoken butt is on our side.
Were we in a bubble?
During the interview with Erik Schatzker at the Bloomberg Invest Summit in New York, Novogratz discussed the fact that critics claim that we were in a crypto bubble earlier this year.
The interviewer seemed to compare the January bull rally of Bitcoin and most altcoins to the 1996 dot com bubble that happened before the catastrophic 1999 dot com bubble that reached $6 trillion only to fall rapidly to $1 trillion shortly thereafter.
Novogratz stated that his belief is that the market will rebound from this major correction and will charge through previous all time highs to at least $20 trillion. This is an incredibly bold statement because at the peak, cryptocurrency was valued at $900 billion so a $20 trillion valuation would mean that we need to increase that high by more than 20 TIMES!
Can we do it?
Can we really get there?
What would that look like?! Pretty crazy really.
“[Cryptocurrency] is a global revolution. The internet bubble was only a US thing. It was rich US people participating. [Cryptocurrency] is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like a bubble when we’re at $20 trillion,” said Novogratz.
The path to $20 trillion
Is Novogratz being overly optimistic like he is well known for? It’s no secret that he is bullish and tends to speculate in a very positive light for crypto…
But, he’s no fool. He knows to use real market indicators, stats, and realistic overviews of the entire industry.
There are many, many reasons to believe that we are on our way up soon like the increased demand from institutional investors but actual investments from institutions haven’t really happened yet. The most recent bull rally, again, consisted of retail investors and individual traders.
Imagine what will happen when we end up with more institutional money in the space!
Financial experts in the cryptoverse have declared more than once that institutional money won’t solidly enter the space until there are more custodial solutions in place for protection. The good news is that larger crypto businesses like Coinbase are working on adding custodial solutions to their list of services. So, we should see more institutional money flood the market soon.
“It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors],” explained Novogratz.
Personally, I think this speculation is kinda crazy but I would LOVE for this to happen because that amount of growth would be absolutely phenomenal! If you think the growth so far has been crazy that would be nuts and I would love to see it. Maybe I am overly cautious, I mean we have seen growth quicker than most people have anticipated, so who knows? Its possible!
I would love to hear your thoughts so feel free to leave a comment or some claps if you found this one useful so others will be able to find it!
Thanks for reading,
Ivy
