Analyst Says, ‘Bitcoin is Getting Ready for Leg-up’, Here’s What he Predicts for Altcoins

  • Mike Novogratz noted in a recent interview that the next Bitcoin [BTC] price rally is going to be “much quicker.”
  • Despite the bearish tidings, he continues to be optimistic about Bitcoin.
  • However, he believes that the entire ecosystem could take 5-6 years to build

Bitcoin [BTC] and the crypto markets have been reeling under bearish pressures for the past two days. The entire ‘safe haven’ analogy with gold is also losing correlation. Moreover, there is no real utility of these assets seen until now.

However, Novogratz believes that “Bitcoin is already a finished product as digital gold.” Hence, there is not much utility required. Moreover, on the price movements, he noted, “Well, put in perspective it is up 200% odd percent already.” He said,

I sense it’s getting ready for the next leg up. I am not sure where that is, I think it is when institutions start coming in. There is a lot of front running of the hope that institutions would come in. They just take a longer than people think.

Nevertheless, on institutional investment, he added that Bitcoin is leading the race and can expect another leg up. He said,

 “Most of the big endowments in the US have already made their first bet in Bitcoin… The Yale, Harward, Stanford… So unsually they are leaders and we’re gonna see pension funds next.”

Businesses Take Time to Build

Mike noted that people have been highly misled by the 2017 rally in crypto markets. Businesses usually do not grow over-night. He classified the rest of the crypto into utility tokens and collectibles (Non-Fungible Tokens) and such. Both these use cases are still in the building phase and are not near the mainstream. He said,

Those aren’t ready for prime time yet. They are in the test case…. There is a little bit of patience needed to see that revolution really happen.

The institutions and entrepreneurs are working on it. However, the rate of adoption of web3 services and other applications is considerably slow at the time. He said,

We’re 5-6 years away from it really impacting the everyday life… Gotta give them runway before we can give them a thumbs up or down.

Nevertheless, he envisions that the blockchain revolution is a strong possibility for the future. Moreover, he believes that Bitcoin is already a finished product with improvements in custody. Hence, the US regulators must go-ahead with products like Bitcoin ETF and mutual funds. Since Canada is ‘contemplating on the issue’, he said,

If Canada goes first, they’re gonna do a lot of business.

Last but not the least, on Galaxy Digital’s trading strategy he suggested that “we buy on dips” and sell during extreme bullish movements.

How do you manage your crypto portfolio? Please share your views with us. 

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