The man who successfully predicted a $10,000 price for Bitcoin by the end of 2017 has gone on record and predicts that Bitcoin could easily be worth $40,000 to 60,000 by the end of 2018.
Hedge fund investor Michael Novogratz thinks that Bitcoin could see some impressive gains for 2018, and that the total cryptocurrency market cap could easily increase six fold. When you look at the large picture you can see how Novogratz can justify such a claim. The current entire market cap for all cryptocurrencies is just over $300 Billion dollars, $150 Billion being represented by Bitcoin. Although this may seem like a large number it actually is quite small considering the space that Bitcoin is trying to represent. If you look at gold with a market cap of 7.5 Trillion dollars you can easily understand why Novogratz believes Bitcoin is undervalued.
Bitcoin over the past few months has seen some impressive gains and this may be a direct result of mainstream investors lately dumping large money into Bitcoin. "There's a big wave of money coming, not just here but all around the world," said Novogratz,
Investors continue to see Bitcoin as a good storage of wealth and a good alternative to traditional stores like gold. Many personal investments from single individuals has also fueled the Bitcoin craze and taken the cryptocurrency to a new all time high of nearly $10,000 at time of press release.
"What's different about these coins than other commodities ... there is no supply response here," Novogratz said. "So it's a speculator's dream in that as buying happens there's no new supply response that comes up. So every price move gets exaggerated. It's going to get exaggerated on the way up. There will be 50 percent corrections. It will get exaggerated on the way down."
Norogratz does not believe that Bitcoin is in a bubble. He argues that the NASDAQ at its high in the 1999 bubble was at 6 trillion dollars market cap and it was American led. cryotocurrencies in contrast are a global phenomenon and not influenced as easily by one market. When the Chinese exchanges were told to stop operations, many suspected a sharp drop in Bitcoin price but that was not the case. Bitcoin not only weathered the storm is flew straight through it with ease.
The speculation surrounding Bitcoin price in 2018 has everyone weighing in and giving opinions. Many influential Bitcoin analysts recently raised their price predictions for 2018 but so far none as high as Norogratz. Tom Lee raised his mid year 2018 prediction to $11,500 and Ronnie Moas bumped his from $11,000 to $14,000. Looking back on 2017 few predicted that Bitcoin would make such an impressive run, but looking back at Bitcoins beginnings, the numbers are even more impressive. Its never easy predicting gains especially in the cryptocurrency field but if we have learned anything about this space is that you can expect almost anything.