Michael Novogratz Bitcoin Prediction: The most well-known names in finance have weighed in on the future of Bitcoin. ARK Invest’s Cathie Wood is convinced Bitcoin is poised to explode, and Tesla’s Elon Musk wholeheartedly agrees.
As with any investment, Bitcoin carries risk. After all, Buffett might be right about the entire asset class. However, by many measures, Bitcoin has reached a tipping point, and it may be a matter of time before current holders see massive returns.
If you aren’t sure who to believe and whether to buy Bitcoin, consider this: former billionaire Michael Novogratz built a fortune from cryptocurrency-related investments, and he has staked his financial future on Bitcoin’s growth.
What is Michael Novogratz’s Bitcoin prediction now, and what factors have persuaded him to adopt his current position?
Who Is Mike Novogratz?
Mike Novogratz has been involved in the world of finance since 1989. That year, he launched his career with Goldman Sachs and rapidly rose through the ranks. He held positions in Tokyo, Hong Kong, and Latin America. Ultimately, he became a partner in 1998.
By 2002, Novogratz was ready for a new challenge – he wanted to explore other sides of the market. He transitioned to Fortress Investments, where he took charge of the firm’s hedge fund division, and he played a key role in the firm’s Initial Public Offering (IPO).
Fortress Investments’ February 2007 IPO pushed the stock price as high as $35 per share, and Novogratz hit the big-time in terms of wealth. In March 2007, he owned 66.6 million shares of Fortress Investments, and Mike Novogratz’s net worth was estimated at $2.3 billion.
That figure declined a bit over the following months, but Novogratz’s real trouble started with the 2008 economic meltdown. By December of that year, Fortress Investments’ share price was down to $1.87, and Mike Novogratz’s net worth was well below the billion-dollar mark. However, he wasn’t discouraged.
Novogratz stuck with Fortress Investments until October 2015, when he finally retired from the hedge fund business – but he didn’t retire altogether. He moved into an entirely new space: cryptocurrency.
Mike Novogratz: Galaxy Digital
In January 2018, Mike Novogratz founded Galaxy Digital with the goal of developing a full-service, institutional-quality merchant bank specializing in blockchain and cryptocurrency. The company’s mission is simple but far-reaching:
To institutionalize the space, and promote the growth and advancement of the underlying ecosystem and technology behind digital assets and blockchain.
In other words, through Galaxy Digital, Novogratz intends to take cryptocurrency mainstream. The firm invests in an array of digital assets, and it pours resources into the research and development of cryptocurrency and blockchain-related technology.
How Rich Is Mike Novogratz?
Over the past six years, cryptocurrency has made it possible for Novogratz to rebuild his fortune. While Mike Novogratz’s net worth hasn’t landed him back on the Forbes’ Billionaires List quite yet, his extensive cryptocurrency holdings might get him there over the next 12 months.
Novogratz has made bold predictions about Bitcoin and other cryptocurrencies. If he is correct, he very well may find himself on the Forbes’ Billionaires List by 2022.
Mike Novogratz Bitcoin Prediction
A long list of respected investors are backing Bitcoin, but Mike Novogratz’s Bitcoin predictions might be the most audacious.
In early 2020, he suggested that Bitcoin’s price will increase 50x by 2030. If true, that would put the cost of a single Bitcoin at $400,000, and the cryptocurrency’s total market capitalization will exceed $8 trillion.
In November 2020, Novogratz’s Bitcoin predictions were specific to the coming year. He said he expected Bitcoin to hit $65,000 in the short term. He was almost proven right in early April 2021 when Bitcoin exceeded $63,000. It has since dropped down again, but that might be temporary. Novogratz says $100,000 is a real possibility by the end of 2021.
Novogratz told reporters that roughly 50 percent of his fortune is invested in cryptocurrency, and he encouraged new investors to put as much as 5 percent of their portfolios into Bitcoin – but only if they planned to hold onto it long-term.
Mike Novogratz Ethereum Prediction
Bitcoin might be Novogratz’s most frequent topic of conversation, but he has plenty to say about other cryptocurrencies, too. In particular, Mike Novogratz’s Ethereum prediction is almost as optimistic as his Bitcoin prediction.
Ethereum launched after Bitcoin, and it seems to be following the path forged by Bitcoin in near lockstep. In fact, from a market cap perspective, Ethereum has exceeded Bitcoin when benchmarks are compared.
Novogratz demonstrated his confidence in Ethereum with Galaxy Digital’s introduction of dedicated investment products – for example, the Galaxy Ethereum Fund. In their first month, this family of funds attracted more than $32 million from investors who wanted to get in on the ground floor of this growing cryptocurrency.
The Future of Crypto: Novogratz Views
Michael Novogratz’s views on the future of crypto can be summed up quite simply: the future IS crypto. He believes that institutional interest in Bitcoin and other cryptocurrencies is in an early stage, and it is just a matter of time before more large organizations exchange some of the cash on their balance sheets for cryptocurrency.
In fact, Novogratz said, the biggest flaw in his past predictions around cryptocurrency’s growth was that he didn’t go far enough. He said he is surprised by the speed at which Bitcoin and others are making inroads in mainstream business.
Novogratz isn’t alone in the expectation that organizations of all sizes will begin incorporating cryptocurrency into their financial strategies. Cathie Wood made the same point when developing plans for her disruptive innovation funds, and Elon Musk has already committed more than a billion of Tesla’s cash to Bitcoin.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.