Mike Novogratz Says Institutional Capital Could Drive Bitcoin (BTC) to $8,000 This Year
Former Goldman Sachs partner Mike Novogratz believes institutional investors are poised to enter the crypto market soon due to recent and future advancements in custody solutions.
“All the architecture that institutions need to feel comfortable with this is being put in place,” Novogratz said. “You’re starting to see the first of the venture funds [get into crypto] and now these hybrid funds, institutions like the Yale endowment. Where Yale goes, people follow.”
Despite these positive steps, Novogratz notes that current custody options appear to be the sticking point preventing the institutional deluge. He cites the entrance of Fidelity Investments, which is targeting a March launch date for its Bitcoin custody service, as an example of a major step forward in that regard. However, Novogratz tempered expectations by emphasizing that institutions won’t all jump into the market at once.
“Over the next 6 to 12 months you are going to see institutions put a small amount of their assets [in digital assets],” added Novogratz. “A small amount of institutional assets is a lot of money.”
Based on these bullish predictions, Novogratz sees institutions driving Bitcoin to as high as $8,000 this year, which would be a roughly 120% increase from current levels.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.