قالب وردپرس درنا توس
Home / Business / Bitcoin bull predicts that prices triple by 2021 – but fear & # 39; melt & # 39; in shares

Bitcoin bull predicts that prices triple by 2021 – but fear & # 39; melt & # 39; in shares



Bitcoin bull Michael Novogratz told CNN Business that the encryption currency will triple over the next 18 months and return to its all-time high of nearly $ 20,000.

"Out of rubble, bitcoin has popped up again," Novogratz said from the sidelines of the SALT conference in Las Vegas.

The infamous volatile crypto course is currently worth around $ 6,000, rising from $ 3,100 in December last year.

Novogratz, a former security fund manager and Goldman Sach's investment banks, does not believe that bitcoin will return to these downturns. The catch would be if there was a devastating hack against an encryption exchange or a sudden shift in regulation.

"It would take something like destroying this newborn trust," said Novogratz, founder and CEO of Galaxy Digital, a crypto bank.

  Hackers steal $ 40 million worth of bitcoin in massive security breaches
Trust did not seem to be shaken by a major security breach in one of the world's largest currency exchanges. Bitcoin prices met despite the news that hackers stole $ 40 million of bitcoin from Binance, a Taiwan-based company.

"For the institutions to thrive, you must have much less of this," he said.

Novogratz encouraged encryption exchanges to "self-regulate" to strengthen security and admit trust in bitcoin.

"A little bit of reel can go a long way," he said.

Others are deeply skeptical of bitcoin because of the extreme price mines.

Nouriel "Dr. Doom" Roubini beat bitcoin Wednesday on SALT as "mother and father of all bubbles and busts." Roubini, professor at New York University, noted that bitcoins crash far surpasses those experienced after the dotcom bubble and even the 1630's tulip mania.

Bitcoin has "no future as currency" and is subject to "massive manipulation," Roubini said.

& # 39; Frothy & # 39; stock market

While Novogratz remains uber-bullish on bitcoin, he is worried about overexuberance in the stock market.

"We have a chance of an equity melting. You see it in enthusiasm around the IPOs," Novogratz said.

On Friday, Uber goes public in a blockbuster IPO set to increase around $ 9 billion or more. Last week, Beyond Meat ( BYND ) spiked 163% on his IPO day. It was the strongest first day pop for a US company since March 2000 when Palm Inc. became public, according to Dealogic.
  Michael Novogratz, CEO of Galaxy Digital, warned against interest rate cuts in a strong economy.

"These frenzyes rarely last. Gravity returns to games," Novogratz said.

While he doesn't believe the market is at the top, Novogratz sees signs that things are "creepy".

"Markets usually end up in a super-spike, some searing frenzy of activity," he said.

The Fed could bring on a "melt up"

A catalyst for that kind of euphoria could be the Federal Reserve.

President Donald Trump has urged the Fed to cut interest rates by full percentage – a startling step normally reserved for a crisis, not a healthy economy.

"The Fed that makes a political mistake by cutting into a strong economy can lead to a rapid melting – and that may be the end," Novogratz said.

Billions Sam Zell nevertheless warns on Wednesday about a "disaster" if the Fed is listening to Trump by lowering interest rates sharply. Such a move, Zell said, would give a huge blow to the US dollar.
  The US economy is swimming in jobs. Calling for a supplement is now bonkers
Stephen Moore, a controversial campaign advisor to Trump, told the SALT audience that it was "so stupid" for the Fed to raise prices last year. Moore, who last week under pressure drew his name from remuneration to join the Fed, urged the US central bank to quickly lower prices.

Moore also cheered the Republican tax cuts and said they worked "even better than we thought they would."

Asked about Moore's comments, Novogratz asked the wisdom of the administration's decision to "cut taxes into a strong economy" and deepen America's budget deficit.

"I'm glad Stephen Moore is not on the Fed," added Novogratz.


Source link