Galaxy Digital’s Mike Novogratz: Cryptocurrency Markets Will ‘Flip Next Year’
Mike Novogratz, founder of crypto bank Galaxy Digital, expects the prices of cryptocurrencies to “start moving again next year.”
During the interview, Novogratz said that “this year has been challenging” for Galaxy Digital – a company that he hopes will become “the Goldman Sachs of crypto” – adding that “it sucks to build a business in a bear market.”
According to FT, Novogratz predicted that financial institutions will transition from “investing in cryptocurrency funds to investing in cryptocurrencies proper in the first quarter of next year.”
As FT reports, Novogratz also predicted that cryptocurrencies will “flip next year” since “that’s when prices start moving again.”
FT also quoted Tim Swanson, founder of fintech advisory firm Post Oak Labs, saying that Novogratz was “trying to predict something that he has no influence over” whenever he says “something is going to happen with price.”
Swanson then added that many companies had tried to do what Galaxy Digital is doing currently without much success, concluding “welcome to four years ago!”
The article also quotes an anonymous founder of a blockchain company saying that “one of the biggest problems in crypto is the lack of credible merchant banking” and that Galaxy Digital is “well placed to be the first to take advantage of new markets.”
According to FT, Novogratz said that “it’s easy to get sceptical but there’s something happening” after having pointed out cryptocurrency developments led by major figures in traditional finance.
Novogratz in particular cited the upcoming Bakkt, a digital assets platform created by the operator of the New York Stock Exchange (NYSE), and the digital assets management services for institutional investors recently announced by major investment firm Fidelity.
This week the Chief Commercial Officer (COO) of global crypto payment processor BitPay also stated that these two moves from the traditional financial sector will cause crypto’s next major prices action. The COO, Sonny Singh, ventured that Bitcoin (BTC) will hit $15,000 to $20,000 by the end of 2019.
Bitcoin is currently seeing new multi-month lows, down about 11 percent at press time to trade at $3,850.