Mike Novogratz says bitcoin will be stuck around $45,000 for a while after Elon Musk’s tweets – but says ether is having a moment

Mike Novogratz
Mike Novogratz is a leading figure in the bitcoin investment community.

  • Mike Novogratz said bitcoin will be stuck somewhere between $40,000 and $50,000 for up to six weeks.
  • Bitcoin has tumbled around 30% from record highs after Elon Musk criticized the token’s energy use.
  • Novogratz told Bloomberg that Ethereum’s ether is “having a moment” and has many use cases.
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Billionaire crypto investor Mike Novogratz has predicted bitcoin will be stuck somewhere between $40,000 and $50,000 for four to six weeks after Elon Musk halted Tesla payments in the token and criticized its energy use.

In interviews with Bloomberg, Novogratz also said ether – the Ethereum network’s cryptocurrency – was “having a moment” because decentralized finance applications, stablecoins and non-fungible tokens, or NFTs, were being built on the system.

Novogratz called a $40,000 to $50,000 bitcoin price range fair and said: “I think we are going to consolidate for a while, four to six weeks.” He added bitcoin may be stuck between $40,000 and $55,000 for the “next chapter” before ending the year much higher.

The former hedge fund executive said his crypto investment firm Galaxy Digital was buying bitcoin because it thinks it shouldn’t dip below $42,000, the level that was tested on Monday.

Bitcoin was up around 1% to $45,097 on Tuesday. But it’s still down 30% from the record high of near $65,000 hit in April, after a hint from Musk that Tesla may sell its bitcoin holdings caused a further sharp fall on Monday. Musk later clarified Tesla had not sold any bitcoin, which it bought for $1.5 billion in January.

Although Musk’s actions have angered many figures in the bitcoin community, Novogratz said the Tesla boss’s concerns should be taken at face value.

“We use electricity for things that we think provide a tremendous amount of value. And so I think you’re going to see a response from this industry, like you should see a response from every industry, to say… we should do something to offset our footprints,” he said.

Novogratz said the traditional financial world was become increasingly excited about ether, the token on the Ethereum network.

“ETH is certainly having a moment, and it’s having a moment for good reason,” he told Bloomberg TV.

“Right now, it’s got the triple whammy. It’s got payment coins, i.e. stablecoins, being built on top of it. It’s got DeFi [decentralized finance] being built on top of it, and it has NFTs [non-fungible tokens] being built on top of it. So the three major thrusts of the crypto revolution are being built on top of Ethereum.”

Yet Novogratz would not say whether he thought ether could climb higher, after having risen by around 370% year-to-date to $3,500 on Tuesday. He said it would be “healthy” if ether consolidated where it was.

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Billionaire investor Mike Novogratz admits he was too negative about dogecoin, which his firm says should not be ignored

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Michael Novogratz is the founder and chief executive of Galaxy Digital.

Crypto superstar Mike Novogratz has said he was too negative about dogecoin in the wake of the meme token’s blistering rally.

The billionaire CEO of crypto investment firm Galaxy Digital had long dismissed dogecoin as merely a joke. He criticized Mark Cuban for selling Dallas Mavericks tickets and merchandise in DOGE and last week told people not to buy it.

But on Monday evening he tweeted: “I had been too bearish. Glad I’m not short.”

Novogratz also shared a report by Galaxy Digital’s research arm that said dogecoin “has remarkably strong fundamentals and powerful forces supporting its rise.” It added: “DOGE should not be ignored.”

The report follows a breakneck rally in dogecoin, a cryptocurrency that was created as a joke in 2013. Dogecoin was up 35% on Wednesday to $0.64552, according to CoinGecko, after touching a record high of $0.68602.

It smashed through the $0.50 barrier on Tuesday after exchanges eToro and Gemini on Tuesday said they would launch dogecoin trading.

By Wednesday morning it had risen 1,015% over 30 days and 25,860% over a year, making it the fourth-biggest cryptocurrency by market size at $83.46 billion.

Novogratz’s Galaxy Research concluded in its report that dogecoin remains deficient to bitcoin – the world’s biggest cryptocurrency – in many ways.

“The network’s immaturity is revealed in qualitative factors like a lack of infrastructure and development,” it said, adding that dogecoin’s unlimited supply and lack of use cases dented its appeal.

But it also argued dogecoin is an admirable project that is capable of rallying significant support.

Dogecoin’s appeal lies in the fact that it is a joke “mocking a frothy market with its playful indifference,” the report said.

“In our view, current dogecoin volatility is fueled by mania, but it is likely that dogecoin will continue to be part of this cryptocurrency story over the long run, always in bitcoin’s shadow, but always lurking and periodically outperforming to surprise us all.

“Dogecoin’s longevity is ensured so long as one truism remains: people love a good joke.”

However, many analysts have warned dogecoin and other so-called altcoins remain speculative and highly risky investments.

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Billionaire Mike Novogratz says cryptocurrencies face a ‘washout’ after the Coinbase listing frenzy

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Michael Novogratz is the founder and chief executive of Galaxy Digital.

  • Mike Novogratz said cryptocurrencies were likely to see a “washout” in the short term.
  • The billionaire investor predicted it would be a volatile week after Coinbase’s direct listing.
  • Yet he remains bullish, seeing bitcoin at $100,000 by the end of the year.

The cryptocurrency market is probably in store for a “washout,” billionaire investor Mike Novogratz has said, after the Coinbase listing created a frenzy that drove up bitcoin and the likes of Dogecoin and XRP.

Novogratz, the founder and chief executive of crypto-focused investment company Galaxy Digital, told MarketWatch in a virtual event: “I’ve seen a lot of weird coins like dogecoin and even XRP have huge retail spikes, which means there’s a lot of frenzy right now.”

He added: “That never ends well, and so we’ll probably have a washout at one point.”

Novogratz also said: “In the next week, certainly we could have some volatility because of the excitement around Coinbase.”

Cryptocurrency exchange Coinbase went public on Wednesday, closing with a valuation of $65.4 billion, in what analysts have heralded as a coming-of-age moment for the crypto word.

Coinbase’s direct listing to the Nasdaq generated a lot of excitement around cryptocurrencies. It sent bitcoin soaring to an all-time high close to $65,000 and also pushed the ether, XRP and Dogecoin cryptocurrencies to records.

But bitcoin (BTC) has fallen quite sharply since Coinbase’s debut to below $62,959 on Thursday.

Despite his words of warning about the short-term outlook, Novogratz remains highly bullish on bitcoin, saying Coinbase’s IPO is “monumental” for the industry.

He predicted that bitcoin could hit $100,000 by the end of the year and may even be worth $500,000 in three years’ time.

Crypto entrepreneur Bobby Lee, who founded one of the first cryptocurrency exchanges, told Insider in March bitcoin investors should be more aware of the token’s wild bull and bear cycles.

He predicted there will be another “winter” when the currency falls dramatically and stays low for two or three years. But Lee is also bullish over the long term, saying bitcoin could even hit $1 million in future bull runs.

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