Hedge fund legend Mike Novogratz predicts that the bitcoin price could “easily” reach $40,000 by the end of 2018, while ethereum is poised to experience a threefold gain during the same timeframe.
“Bitcoin could be at $40,000 at the end of 2018. It easily could,” the former Fortress manager said Monday on CNBC’s “Fast Money,” noting that the asset has significant upside due to its utility as “digital gold”.
Previously, Novogratz had forecast that bitcoin would reach $10,000 by the end of 2017. Although the global average bitcoin price had not quite broached that threshold at the time of writing, bitcoin had reached the five-figure mark on several South Korean exchanges.
Bitcoin has increased more than 1,200 percent for the year, and Novogratz believes that rally will continue into 2018 — albeit at a somewhat more conservative pace — on the heels of increased institutional activity within the crypto markets.
Novogratz aims to facilitate that wave through Galaxy Investment Partners, a $500 million crypto asset hedge fund he is launching next year.
He expects that the introduction of these new market participants could help bitcoin “easily” reach $40,000, which would raise its market cap to approximately $670 billion.
But although bitcoin will remain the “crypto king,” Novogratz believes other cryptocurrencies — including ethereum — will catch its tailwinds and experience phenomenal growth as well.