Following another postponement of decisions on another ETF proposal and cryptocurrency prices remaining relatively stable, a former Hedge Fund manager Michael Novogratz has expressed optimism that Bitcoin and other cryptocurrcies will get better than they are currently.
The former manager mentioned this at the annual Yahoo Finance second annual All Markets Summit in New York yesterday 20 Sept. 2018. He said the sell-off of bitcoin has reached its peak and it is time for the digital asset and other cryptocurrencies to bounce back.
Novogratz’s prediction of a bounce back for cryptocurrencies is based on Galaxy Digital’s cryptocurrency index, a tool that monitors cryptocurrency markets. The price index shows that the top 10 cryptocurrencies have lost about 85% of their values since the beginning of the year, and Novogratz believes they will soon experience a bounce back.
He also said concerning bitcoin “Bitcoin has held $6,000. Yes, it is off its highs, but it has established itself as a store of value. I think institutions are moving towards investing. It’s shocking how much has happened.”
In fact, many financial institutions have considered investing in Bitcoin, some of which are already making a move. Most however are deterred by the fear of government regulatory outcomes which may not favour the market.
Concerning SEC’s decision on approval of the VanEck and SolidX ETF proposal, the commission said it is waiting to get public opinion on the matter before going ahead to make its decision.
According to the secretary of the SEC,
“Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.”
According to reports, SEC has received at least 1,400 comments on the issue and more are following.
Bitcoin ethereum, ripple, stellar, and litecoin enjoyed a price rise throughout 2017 and bitcoin got to the peak of $20,000 at the end of the year. The year 2018 however has been a bit unfriendly for the cryptocurrency market.
Nevertheless, Novogratz believes things will turn around soon. This may be true considering bitcoin is trading at over $6,700 at the time of writing this article as opposed to the $6, 300 range in the last few days. It will be interesting to see where the market goes from here.