Mike Novogratz predicts cryptocurrency market to hit $20 trillion

Former Goldman Sachs and Fortress trader, and billionaire investor, Mike Novogratz, has declared that the cryptocurrency market will eventually reach $20 trillion.

Speaking to Erik Schatzker at the Bloomberg Invest Summit in New York, Novogratz stated that the total cryptocurrency market cap is going to expand massively.

Cryptocurrency is not a Bubble says billionaire Mike Novogratz

During the interview, Schatzker asked Novogratz about skeptics criticizing the volatility of the cryptocurrency market, likening it to a bubble in early 2018.

Mr. Novogratz said in response that the cryptocurrency market is going through a correction that will see its values eventually rise exponentially, rather than crash.

Mike Novogratz says that the cryptocurrency market will soon rebound from its major correction in mid-2018.

Following the correction, values will eventually surpass previous all-time highs to hit a $20 trillion market region.

The cryptocurrency market reached a valuation of around $900 billion, at its peak.

A $20 trillion total market cap would require just over 22-fold increase from previous all-time highs.

Responding to comparisons to the dot-com bubble, Novogratz said:

“[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.”

$20 trillion would be tough

Novogratz may often be considered optimistic as an investor, but he offers statistics to back up his prediction.

His evaluation of the cryptocurrency market is based on real indicators and a realistic overview of the industry.

Despite the growing demand from institutional investors for cryptocurrencies, Novogratz emphasizes that actual investments of this type have yet to happen.

He notes that the recent bull rally was down to retail investors or individual traders, and the impact of institutional money has yet to be felt.

A number of experts agree that institutional investors would require stable and robust custodian solutions before entering the market.

As leading cryptocurrency firms such as Coinbase and traditional financial companies like Susquehanna are already working on custodian solutions, it seems likely that institutional money will begin flooding the market in the mid-term.

Speaking from his own experience, Novogratz explains:

“It won’t go there ($20 trillion) right away.

“What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what?

“We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy.

“And all of the sudden, the second guy buys.

“The same FOMO that you saw in retail [will be demonstrated by institutional investors].”

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