Throughout the past year, cryptocurrencies have been the hot topic of debate in terms of new investments and currencies. Companies around the world and in a wide variety of industries are currently looking into cryptocurrencies, blockchain, and distributed ledger technology as a whole and are hoping to take advantage of their many benefits. As the demand and price for cryptocurrencies grow exponentially, so does the market capitalization rate. Previously, bitcoin advocate and founder of Galaxy Digital believed that the cryptocurrency market capitalization would reach $800 billion by the end of the year. Since then, his forecast has changed.
In recent weeks, cryptocurrencies have really been bouncing back after an extended period of negativity. This past week, Bitcoin returned to a mark over $8400, a forty percent increase from its 2018 low around $5800.
In an interview with CNBC Africa’s Crypto Trader, Mike Novogratz discussed the cryptocurrency market and forecasted that it will get to $800 billion by this time next calendar year. Currently, the cryptocurrency market capitalization is around $300 billion, although was over $800 billion at its peak earlier this year. With all the hype around cryptocurrency, it’s not hard to believe why Novogratz believed the market cap would reach $800 billion by end of the year. In recent months, these currencies have not held at those marks. However, Novogratz believes they may have bottomed out. In his words, “I’m not positive we’ve bottomed but it feels like we have. But I do think that we are building a nice bottom for the next move up.”
When asked why he believes cryptocurrencies will continue to grow, he attributed it to the gradual adoption of the currencies. Each month and year, more and more people are attending crypto conferences and using crypto-related businesses. Additionally, many private and, even a few public institutions, are entering the crypto market by investing in crypto companies through various capital funds.
In addition to gradual adoption, Novogratz also believes that institutional FOMO could spur many institutional investors to hop on board. In his words, “it’s not there yet, but there’ll be a tipping point.” Novogratz envisions modern-day pension funds being the first to heavily immerse themselves in the crypto market and believes others will follow along the way. He believes that once investors and individuals see big names companies like Goldman Sachs in the crypto market, they will instantly be convinced of its value.
Beyond Novogratz, a few other analysts have chimed in. Matthew Newton, an analyst at eToro, also thinks that Bitcoin and cryptocurrencies are picking up strength. He believes that since Bitcoin has recently passed the $8,000 mark that it is very likely to have a good run towards $10,000 in the next week months. Joseph Young, both an analyst and an investor, also weighed in but rather than looking at price, Young’s analysis focused on volume. Just a week ago, Bitcoin’s volume was at $3 billion; however, just a week later its volume is approaching $7 billion. In total, many analysts have watched the promising rises in price and volume and forsee market capitalization continuing to grow.