Mike Novogratz made a strong prediction for long-term bitcoin holders that the currency would not fall below $5,000 again.
Bitcoin Price Prediction
Speaking on CNBC’s “Squawk Box” program, Novogratz shared his opinion on the future direction for bitcoin, particularly in light of July’s high price volatility. Investors hoping to buy the dip will be disheartened to hear that Novogratz believes bitcoin’s days trading below $5K are officially in the past.
The billionaire CEO of Galaxy Digital and former hedge fund manager was asked whether BTC would ever go back to $5K.
“I don’t think so. I think if it goes below $8500 I’ll get nervous. If it goes below $6,000 I’ll get real nervous.”
Novogratz was also asked his opinion on how investors should be diversifying their portfolio with crypto, including what he believes to be an adequate amount of holding. While the show’s host joked that the billionaire had “a huge amount of crypto,” he was concerned with how much a normal person should be allocating to bitcoin and other crypto-assets.
Novogratz replied that the average investor should allocate 2 to 3% of their portfolio to crypto. He also told the panel that he held 7% of his net worth in gold.
When asked whether he had more invested in precious metals or bitcoin, the CEO was quick to respond with the latter: “more in bitcoin.” Novogratz also claimed not to speculate with his bitcoin, instead using it for long-term growth.
While Novogratz has established himself as a bitcoin bull and supporter of crypto-assets, he has had to weather the market volatility alongside the rest of investors.
In April, Galaxy Digital’s financial disclosure was released, revealing that the company had suffered massive losses during 2018’s bear market. According to the report, Galaxy Digital lost $101.4 million from selling crypto at a loss, with an additional $75.5 million lost in crypto investments that were generating a negative ROI.
However, bitcoin’s price increase throughout 2019 has been a profitable venture for Novogratz. The fund reported a net income of $13 million in Q1 2019, and will likely have another successful quarterly earnings report for Q2 following bitcoin’s rise to above $10,000.