There are people like Zhao Changpeng of Binance who think the crypto market could grow again by a thousand times, and then there are people like Galaxy Digital’s Mike Novogratz who doesn’t believe that Bitcoin can hit the $9k roof by end of this year. Mike is the CEO of Galaxy Digital Capital Management, an investment firm.
A former manager in Wall Street, the billionaire investor seems to have his own opinion about the direction taken by the crypto market – and Bitcoin in particular. Speaking at a conference named Economist Finance Disrupted on October 2nd, Mike said that it will be a hard task for Bitcoin to rise to $9,000 this year.
In his view, the cause of this entire price slump is the sloppy operations undertaken by some industry players, especially companies that are selling off their crypto caches. This, in turn, fuels the burn rate of the crypto industry, resulting in a fall in prices.
He said that the companies in question aren’t really earning that much from their trades and can barely foot their operational costs and employee salaries.
Mike Novogratz has been known for his changing market predictions. It was in November 2017 and the crypto market was heading to the skies when Mike said that Bitcoin would be at the $45k market price 12 months from then.
A few months into his prediction, precisely over the summer of 2018, Mike changed his mind, saying that the mass adoption of crypto and blockchain was yet to take off. He gave a prospect of between 5 to 6 years for the mass adoption to happen. However, he maintained that many more financial institutions and crypto market players would enter the market in 2 to 3 year’s time.
Come mid-September, and Mike was no longer of the opinion that Bitcoin was headed anywhere, saying that the crypto market had already bottomed out. September was the month the crypto market took quite a beating, with numerous cryptocurrencies going bearish and losing a significant share of their price as compared to the boom of 2017. Since the start of the year, Bitcoin lost 54% of its peak value. Others like Ripple’s XRP and Ethereum have shed off even more.
