Bitcoin, the crypto world's highest-profile currency, has the potential to rise 18% to $10,000 after more than doubling thus far in 2019, according to one bull. Bitcoin will be buoyed by "excitement and momentum" as cryptocurrencies in general receive wider acceptance, including by major players like Facebook Inc. (FB) and Microsoft Corp. (MSFT), said Mike Novogratz, chief executive officer of Galaxy Digital Holdings Ltd, according to a recent story in Bloomberg. Bitcoin is the largest cryptocurrency by market cap.
- World’s largest cryptocurrency rises nearly 1,300% year-to-date through June 3
- Billionaire investor expects Bitcoin to consolidate between $7,000 and $10,000
- The average daily Bitcoin price change rose to 4.7% May from 1.1% in March
- Price volatility saw similar peak in December, at the bottom of the Bitcoin bear market
The billionaire investor, a former partner at Goldman Sachs, attributes Bitcoin’s success this year to the digital coin’s push into the mainstream. A long list of established Wall Street firms and tech companies have embraced cryptocurrencies and the underlying blockchain technology for a broad range of uses.
While the odds are that Bitcoin will rise, Novogratz notes Bitcoin will probably consolidate somewhere between $7,000 and $10,000. While either price represents a doubling or tripling from December, $7,000 per coin would reflect a more than 17% decline from today's levels near $8,500 per coin.
“If I’m wrong on that, I think I’m wrong to the upside, that there’s enough excitement and momentum that it could carry through," said Novogratz. “We have gone from, you know, crypto as an experiment, is it real? Is it tulips? To crypto is going to be a substantial part of the financial and consumer infrastructure of the world,” he added.
This upbeat call from Novogratz comes as Bitcoin's daily price changes in May were the highest since December, when Bitcoin reached a low, per another Bloomberg story.
The average daily up-and-down move in Bitcoin last month spiked to levels not seen since the fourth quarter of 2018, during the crypto “winter.” The daily price change for Bitcoin averaged 4.7% last month through May 28, per Bloomberg data, compared to 1.1% in March. In full month of December, when prices of bitcoin plunged, the average daily change was 4.2%.
Meanwhile, the Bloomberg Galaxy Crypto index, measuring the spread between upper and lower levels price range levels, is at its highest in 2019.
Many crypto enthusiasts are optimistic about a recovery higher than $10,000 for Bitcoin, thanks to lower supply and an upcoming “halvening” of coins in 2020. But others aren't so sure. Bloomberg intelligence analyst Mike McGlone points to Bitcoin’s 30-day volatility level, near its December peak at the bear market bottom. “When volatility gets high it should be indicative of extremes in price,” he said. “The market is getting a bit stretched here from a trader’s standpoint.”