Bitcoin has been absolutely slammed over the past day. According to Coin Market Cap data, the cryptocurrency has shed some 7% in the past 24 hours, while altcoins have fallen by a similar amount.
Despite this bearish price action, which some analysts say is the start of yet another nasty downturn in this nascent market, some remain unfazed. One of these troopers is Michael Novogratz, formerly of Goldman Sachs and Fortress Financial. The current chief executive of Galaxy Digital recently explained in an interview that he expects for Bitcoin to head higher once again, shaking off the lull and the recent collapse in the price of the leading crypto asset — Bitcoin.
Speaking to Bloomberg, the former institutional investor stated that he believes that institutions are finally starting to enter into the cryptocurrency game, and will thus drive up the price of Bitcoin. Like many others in the industry, he believes that this class of investors will bring in monumental levels of capital to this space, outpacing any retail investors that came before them.
But what will institutions bring the Bitcoin price to? You might be asking.
Well, in previous interviews, he has suggested $20,000. As detailed by Ethereum World News on an earlier date, he stated that institutions will be the catalyst that will bring Bitcoin to $20,000, potentially by year’s end. Crazy, right? He stated back in late-July:
“I’m not selling the next time we hit $14,000. The second time we reach that level, [there may be] a move to $20,000. I don’t expect this to happen in the next few weeks: I don’t expect it to the middle or the end of the fourth quarter. But the next wave will come when the institutions — the state of X, Texas Teachers Union, and those guys — come in, and then you will see Bitcoin hit $20,000 and higher.”
The fundamentals seem to be supportive of such a rally, which would mean that Bitcoin would need to gain another 100% in under six months.
Bakkt, as this outlet reported, is expected to launch its Bitcoin futures and custody products in the coming weeks. The Wolf of All Streets, a prominent DJ and trader, bills the exchange as “arguably the most bullish event for institutional investors in the history of Bitcoin”. These new contracts “will require the actual purchase of BTC”, which is dramatically different than the model that the CME enlists, which settles all dues in cash.
With Fundstrat currently expecting for a “critical mass” of institutions to adopt the product, mass buying pressure could flood the underlying market.
Speaking of Fundstrat, Tom Lee, the co-founder of the research unit, is also target $20,000 by year’s end. He has stated on multiple occasions that a variety of factors, including the Federal Reserve’s interest rate cuts and the launch of the Libra project, will be catalysts for yet another BTC leg higher.