Billionaire Novogratz Predicts $20,000 Bitcoin Price Within 18 Months

Michael Novogratz, a former hedge fund manager and current CEO of Galaxy Digital, a full-service cryptocurrency merchant bank, has predicted that the bitcoin price will triple within the next 18 months.

Novogratz, a graduate from Princeton University, believes that the bitcoin price will return to its previous all-time high of nearly $20,000, which the cryptocurrency reached on December 17th, 2017.

Bitcoin Has "Popped Back Up"

Novogratz, whose comments came during an interview with CNN Business at the SALT Conference, held in Las Vegas, Nevada on May 9th, 2019, remarked:

Out of the rubble, Bitcoin has popped back up.

According to Novogratz, Bitcoin price will not drop as low as it did in December 2018, when the world’s most dominant cryptocurrency was trading at only around $3,200. However, the former Goldman Sachs investment banker clarified that Bitcoin’s value may plummet if another major cryptoasset exchange is hacked or if more restrictive crypto regulations are introduced.

CryptoCompare Bitcoin Price chart 1 year

While speaking at the SALT Conference, Novogratz stated:

It would take something like [a major security breach of a crypto exchange] to shatter [the] newfound [investor] confidence in the [digital asset market].

Despite a recent large-scale security breach that occurred on leading cryptoasset exchange Binance on May 7th, 2019 (resulting in a loss of around 7,000 BTC, valued at over $40 million), the crypto market’s confidence appears to not have been affected. This, as the Bitcoin price has surged past the critical $6,000 mark and the cryptocurrency is now trading at around $6,031 at press time.

However, Novogratz thinks that, in general, "for institutions to feel comfortable, you've got to have a lot less of this.” The Galaxy Digital founder also recommended that cryptoasset exchanges implement more robust security for their trading platforms.

Notably, Novogratz is not the only prominent crypto industry participant who’s bullish about Bitcoin. Tuur Demeester, the founder and CEO of Adamant Capital, recently said during an interview conducted by Peter McCormack on the WhatBitcoinDid podcast that the Bitcoin price is greatly influenced by psychological factors.

Demeester explained:

If you look at the blockchain and the Bitcoin that is being moved and then compare it to the current price, you will get something that is called the unrealized profit and loss. There is an assumption that when BTC is moved it is sold, and this event is called a value realization event. It is just that the owner had the opportunity to liquidate their Bitcoin and that is why they took it.

“Investor Psychology More Inclined Towards Greed When Bear Market Sets In”

He added that the crypto market has seen “similar patterns during late 2013 and early 2014” when there was an accumulation of substantial “unrealized profits.” Demeester pointed out that the same thing happened during the summer of 2017.

Demeester stated: 

The investor psychology was more inclined towards greed and when the bear market sets in, the positive sentiment obviously decreases. Once it is in the red, retail investors walk away which is what happened in November 2018 when BTC dropped from $6,000 to almost $3,000 [by December 2018].

Bitcoin Hashrate Hits New Record as New ASIC Miners Brought Online

Neil Dennis

Bitcoin's hashrate - the computing power dedicated to mining the world's biggest cryptocurrency by market capitalization - hit another record high as thousands of new miners came online in the last few months.

Data from bitcoin mining pool BTC.com showed another milestone level passed. At block height 594,720 , the average hashrate jumped to 85.08 exahashes per second (EH/s), smashing the previous record rate of 77.08 EH/s on September 1.

Mining Difficulty

As ever more powerful mining rigs come online and compete for bitcoin rewards, the hashrate increases as the network's blockchain adjusts its mining difficulty to ensure the time to produce a single block remains the same - around 10 minutes.

On Friday September 13, the difficulty rate also hit a new record high of 11.89 trillion, up from the previous 10.77 trillion as measured on September 1.

Powerful new application-specific integrated circuit (ASIC) miners have an average hash power of about 55 terahashes per second (TH/s). Given that 1 EH/s is equal to 1 million TH/s it can be estimated that since June 14, when the hashrate stood at 53.03, the extra 33 EH/s may be accounted to around 600,000 new ASICs added to the total bitcoin mining pool in those three months.

Just last week, two new Bitmain ASIC models hit the market only to be sold out instantly.

 

Featured Image Credit: Picture Courtesy of Bitmain