Michael Novogratz, one of the earliest bitcoin investors and earning too much money from bitcoin, has suspended his plans to open up his cryptocurrency fund, and predicted that Bitcoin prices could down to $ 8,000.
“We didn’t like market conditions, and we wanted to re-evaluate what we’re doing“
Novogratz explains during a phone conversation.
“I look pretty smart pressing the pause button right now.”
Last week, Novogratz(53-year-old) told investors he had changed his mind, just two days before a fund called the Galaxy Digital Assets Fund was set to launch on Dec. 15. The reason is that there are more and more obstacles, including the purchase of Bitcoin or Ethereum for customers, and the sale of cryptocurrency in individual accounts.
Bitcoin prices have down 42 percent in the four days to Friday, the biggest drop in such time since 2013. On Friday Bitcoin prices down to $ 10,776, before falling back. to over $ 13,000 in New York City afternoon. Prices of other cryptocurrencies such as Ethereum and Litecoin also dropped as well.
On Dec 01, Bitcoin’s most recent price tag below $ 10,000, when the US Commodity Futures Trading Commission (CFTC) agreed to allow trading futures contract base on Bitcoin.
Despite postponing plans to open cryptocurrency funds, Novogratz still does not give up the field. He says he believes the technology behind cryptocurrency will make a big difference in the financial practice. Recently, he predicted that Bitcoin might reach $ 50,000 by the end of next year, from $ 40,000 previously estimated.
On Friday, Novogratz wrote on Twitter to clarify his views on Bitcoin and other virtual currencies: “We postpone opening virtual funds with the involvement of outside investors because We do not like the current market conditions for new investors. ” He insisted on the long-term appreciation of currency.
Bitcoin prices may fall to $ 8,000 before rebounding, consolidating between $ 10,000 and $ 16,000, and will not rise to $ 20,000 again in at least another 3-4 months, Novogratz said.
Bitcoin surpassed $ 13,000, $ 16,000, and $ 17,000, and Ethereum exceeded $ 600, $ 700, and $ 800. He reportedly suffered a loss on Friday when the virtual currency fell sharply, but still gains this month.
The cryptocurrency boom has brought great profits for Novogratz. After acquiring Bitcoin and Ethereum in early 2015, this year he began selling and pocketing a profit about $ 250 million.