Michael Novogratz at Galaxy Digital is once again making positive pronouncements about future values of bitcoin.
In the wake of a run-up that has seen Bitcoin move from around $6000 to nearly $9000 in the past few weeks, Novogratz is making a prediction that Bitcoin will end up in a certain range – namely from $7000 to $10,000.
“Given the huge run-up in cryptocurrencies this year, billionaire investor Mike Novogratz is predicting Bitcoin will soon consolidate to a narrower trading range, but noted that pure excitement could carry prices even higher,” writes Vildana Hajric at Bloomberg.
“On a go-forward basis, Bitcoin probably consolidates somewhere between $7,000 and $10,000,” Novogratz reportedly said Thursday in a Q1 call. “You know, trees don’t grow to the sky.”
Those numbers might sound great, unless you actually look at the chart and realize that at $8500, BTC is already in the exact middle of that range. So there’s every indication that, given that theoretical range, Bitcoin could end up lower.
However, Novogratz also suggests that he’s estimating conservatively.
“If I’m wrong on that, I think I’m wrong to the upside, that there’s enough excitement and momentum that it could carry through,” Bloomberg quotes Novogratz as saying.
Reporting from Cointelegraph today shows that Novogratz has, in some senses, put his money where his mouth is – of the lion’s share of new profits reported by the firm, much of it is reported to come from action around cryptocurrency asset holdings.
“When it comes to Galaxy Digital’s earnings, in the three months that ended on March 31, the company had a net income of $12.9 million, while the company reported a net loss of $134 million in the same period a year earlier,” writes Adrian Zmudzinski this morning. “The income was reportedly mostly the result of crypto assets appreciation and investment gains.”
We’re going to see a lot of predictions of Bitcoin far above where it’s currently at – Novogratz’s prediction is interesting because it essentially theorizes that statistically speaking, we’ve we reached the end of the rally.
In today’s market, we see crypto currencies actually falling with the general market, which doesn’t always happen. A couple of weeks ago, as general markets panicked over US/China trade conflict, Bitcoin and others were still climbing. Now we have a sort of broad correction on cryptocurrency values. Let’s see what happens next week.