Ex-hedge fund manager predicts Bitcoin will see $50k in 2021

Ex-hedge fund manager predicts Bitcoin will see $50k in 2021

By Sam Grant - min read
Bitcoin on the background of gold stars

Billionaire tycoon Michael Novogratz believes the leading crypto will reach $50,000 next year

Bitcoin (BTC) has had a tumultuous albeit positive run with bulls pushing the asset’s price beyond its previous all-time high. BTC price has jumped over 100% in the last two months. The crypto is currently enjoying fresh grounds for the first time since 2017 after an impressive bull run that was kick-started by PayPal’s entry into the cryptoverse.

Bitcoin recently entered an uncharted $24K level although a consequent market correction resulted in a price slump. Michael Novogratz formerly of the Fortress Investment Group is confident that the crypto will continue with its record run and reach $50,000 next year. Novogratz, now a crypto investor, is convinced that the digital asset will eventually transcend gold.

Speaking to Raoul Pal, CEO of Real Vision, Novogratz said, “It is easy for me to see Bitcoin being at $50,000 next year. That is 10% of gold”.

Lately, Bitcoin has been compared to gold by several analysts and investors including Anthony Pompliano. The crypto asset has even been dubbed digital gold owing to its safe-haven characteristics. Many Wall Street big names have flooded the Bitcoin market as they consider the asset a viable inflation hedge.

At the beginning of the month, Ray Dalio of Bridgewater Associates (the world’s largest hedge fund) changed his opinion on Bitcoin saying it had proved to be a gold-like asset.

Novogratz sees Bitcoin surpassing gold in terms of valuation.

“I know once we get to 10% of gold, we are like, why is it only 10% gold? Why is it not 25% of gold? Then it is going to eclipse gold at one point”.

However, the Galaxy Investment chief executive is pragmatic and doesn’t believe that it is going to happen anytime soon.

“I guarantee it is not going to happen in a year”, he remarked.

Novogratz further opened up about the impact of the coronavirus pandemic saying it has accelerated the crypto revolution.

“We are going to look back and in some weird way, this is going to have been a blessing for the cryptocurrency revolution for the community”.