Mike Novogratz said that the cryptocurrency market will grow to $20 trillion at the Bloomberg Invest Summit.
Skeptics asked how the billionaire investor refers to the criticism of rapid growth of the crypto-currency market and the events of January 2018. Novogratz answered: if the January race of bitcoin, ethereum, other cryptocurrency is considered a bubble, then it can be correlated with the dotcom bubble of 1996, which led to the bubble of 1999. Then the market grew to $6 trillion and then deflated to $1 trillion.
Novogratz claims that in middle of 2018 the cryptocurrency market will rebind from its current correction and reach a capitalization of $20 trillion. It’s worth noting that at the January peak the crypto-exchange market reached about $900 billion.
Although Novogratz is considered the greatest optimist among crypto-currency investors, he offers a future assessment of the crypto-currency market based on real indicators of the industry and statistics. Novogratz stressed that there was almost no actual investment in digital currencies on their part. Despite the growing demand from institutional investors, the last rally was due to retail investors and individual traders.
Many experts, including the founder of Blocktower Ari Paul, said that attracting institutional investors requires stable and reliable solutions for the storage of funds. Considering that many crypto-currency companies, including Coinbase, as well as representatives of the traditional financial sector, such as Susquehanna, have already begun to create solutions for the storage of funds. It is likely that in the medium term institutional investors will still enter the market.