Mike Novogratz’s future Bitcoin rally view was recently aired on the business network Bloomberg, October 15, 2018.

Michael Novogratz, known as the king of cryptocurrencies, believes that a wave of institutional buying in Bitcoin, perhaps in the first half of 2019, is going to propel Bitcoin to new highs.

“…I think Q1 [or] Q2 [2019] if the institutions start coming in, we’ll put in new highs” he told the network.

“…I think Q1 [or] Q2 [2019] if the institutions start coming in, we’ll put in new highs”

MICHAEL NOVOGRATZ

Mike Novogratz’s future Bitcoin rally view should not come as a surprise to those of you who have been following the world’s most prominent high profile investor in cryptocurrencies.

Mike Novogratz, a former macro hedge fund manager at Fortress Investment Group, trader and ranked a billionaire by Forbes in 2007, is a diehard cryptocurrencies bull and for a good reason.

The king of cryptocurrencies made his fortune investing early in cryptocurrencies, particularly bitcoin and ethereum.

But Mike Novogratz’s future Bitcoin rally view should be seen with a healthy dose of skepticism. Some of you familiar with the world of cryptocurrencies and the big punters around the table may recall early in the year when Mike Novogratz took to the stage and touted the idea that Bitcoin could ‘easily’ reach $40,000 by of the year.

Bitcoin could ‘easily’ reach $40,000 by the end of 2018 said Mike Novogratz on CNBC’s “Fast Money”.

If you took the king of cryptocurrencies call to the bank you’d be nursing some heavy losses. Bitcoin is trading near its 52 week low of 6,500 USD down 54.55% year to date.

“If you took the king of cryptocurrencies call to the bank you’d be nursing some heavy losses. Bitcoin is trading near its 52 week low of 6,500 USD down 54.55% year to date”

 

When Bitcoin dropped to $8,000 Mike Novogratz’s view was not to worry because the “Bull Market” isn’t over, he said.

So let’s spell out the fact; cryptocurrencies investing has yielded a dismal return over the last year and destroyed wealth.

In a piece entitled, “Cryptocurrency – Stellar rise in value is a vote of no confidence in the status quo”, from 17 September 2017… “cryptocurrency is unlikely to fly under the radar for too long, it too a potential threat to the debt monetary system could be targeted and torpedoed. What a bloodbath that would be. So are investors in cryptocurrency being hemmed in for the slaughter?”

Yet another call that was bang on the money and for those of you fortunate enough to have access to speculative capital could have shorted and taken it to the bank.

“if cryptocurrencies are not behaving like a risk-off asset then it too could be another risk-on asset waiting to be dumped”

Today we are even more skeptical about Mike Novogratz’s future Bitcoin rally view and here is our 50 cents worth; Bitcoin is no digital gold, it is not behaving like a safe haven asset. In fact, we would argue that cryptocurrency is a function of the Central bank’s largest monetary easing experiment in the history of finance.

In other words, the central bank’s unprecedented monetary easing policy created the bubble of everything and cryptocurrencies could be part of that froth.

But with the Fed’s transition to normalization policy, risk-on assets are being dumped.

So if cryptocurrencies are not behaving like a risk-off asset then it too could be another risk-on asset waiting to be dumped.

“institutional investors buying Bitcoin could be a fairytale”

Mike Novogratz’s future Bitcoin rally view is based on institutional buying, which is highly regulated. Institutional investors are not allowed to invest in physical gold, although they can invest in gold stocks. So institutional investors buying Bitcoin could be a fairytale.

Mike Novogratz’s future Bitcoin rally view sounds like a desperate gambler’s last roll of the dice.
Time will tell.

TRADING SOFTWARE

Dan Loeb targets Sony. Dan Loeb is an activist investor and founder of Third Point, which oversees about $14.5 billion in assets.

Last year the activist investor viewed Campbell soup as a bargain when Third point reported that the soup maker could fetch a takeover value of $52 to $58 per share.

A year later and the activist investor Dan Loeb targets Sony

Dan Loeb's activist hedge fund Third Point is raising an investment vehicle to generate between $500 million and $1 billion so it can continue to buy Sony shares, according to a recent report in Reuters.