The billionaire investor and former Goldman Sachs and Fortress trader, Mike Novogratz was at the Bloomberg Invest Summit in New York and he said there, that the cryptocurrency market is moving to the $20 trillion regions.
Although, during the interview, he also asserted that the $20 Trillion mark will not be easy. Although many view Novogratz as an optimist and bullish investor in the cryptocurrency sector, he has evaluated the market using actual indicators, statistics, and a realistic industry outlook.
Novogratz emphasized that institutional investors have made virtually no real investments, and retail investors or individual traders triggered the latest bull rally. And it is so, regardless of the mounting demand from institutional investors for cryptocurrencies.
Experts Highlight Need for Strong Custodian Solutions for Institutional Investors
Many experts like Block-tower founder Ari Paul have noted in the history that the entry of institutional investors would need steady and forceful custodian solutions. It is likely that institutional investors will enter the market in the mid-term since many cryptocurrency businesses including Coinbase and conglomerates in the traditional finance sector such as Susquehanna are by now in process to build custodian solutions.
Novogratz explained, ‘It won’t reach $20 trillion right away. One of the bold pension funds—someone leading the market—will step in and say, you know what? We hold custody, Goldman Sachs participates, and Bloomberg provides an index to track performance.Then they’ll buy. Suddenly, a second fund follows. The same FOMO we saw in retail will appear among institutional investors.’
The interview focused on the economics of the cryptocurrency market. The interviewer also asked him about criticism from skeptics concerning Bitcoin’s bubble-like trend in early 2018. He had previously made headlines for his involvement in a ‘Merchant Bank.‘
In response, he argued that if the January bull rally of Bitcoin, Ethereum, and other cryptocurrencies is considered a bubble, it resembles the 1996 dot-com bubble, which occurred before the 1999 surge that pushed valuations to $6 trillion before crashing to $1 trillion.
He also stated that the cryptocurrency market will bounce back from its main alteration in mid-2018 and surpass previous all-time highs to reach a $20 trillion market valuation.
“[Cryptocurrency] is a global revolution. The internet bubble was only a US thing. It was rich US people participating. [Cryptocurrency] is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like a bubble when we’re at $20 trillion,” said Novogratz.