Mike Novogratz, founder and CEO of Galaxy Digital, claims Bitcoin is positioned for the big growth now that institutions are investing in it and big companies are starting to accept it. Novogratz told CNNMoney "Markets Now" that large companies such as Microsoft and Starbucks allow customers to use Bitcoin and, in the short term, more institutions will be "Fear of Missing Out" (FOMO).
Institutions Step Forward
Citigroup and Morgan Stanley announced plans last month to add a cryptocurrency custodian solution. Coinbase and Bitgo, meanwhile, have set up custodial solutions, providing product institutions that can be used to enter the cryptocurrency market.
Bitcoin will become part of the individual portfolio eventually, he said, and more people will see Bitcoin as a store of value, similar to gold.
The Galaxy worked with Bloomberg on the Bloomberg Galaxy Crypto Index in May to track 10 digital currencies, including Bitcoin and Ethereum.
Lowest Prices Already Formed?
While Bitcoin surged nearly $ 20,000 late last year before losing nearly two-thirds of its value this year, Novogratz considers it to reach bottom in early September. He said in mid-September that the market hit a low when a widespread sell-off pushed the market capitalization to around $ 186 billion.
He expects momentum to begin in the first quarter of 2019.