- REUTERS/Rick Wilking
- Famed hedge funder turned crypto-investor, Michael Novogratz told CNBC bitcoin could reach $40,000 by the end of 2018.
- A wave of money from both institutional and retail investors is sitting on the sidelines, according to Novogratz.
Famed hedge funder turned crypto-investor Michael Novogratz does not think bitcoin will top out any time soon.
The former Fortress manager told CNBC Monday that bitcoin, which has been flirting with $10,000, could potentially hit $40,000 by the end of 2018.
Novogratz, who is planning to launch his own cryptocurrency hedge fund, said a spike in interest from both retail and institutional investors could push bitcoin to his bullish price target.
“There’s a big wave of money coming, not just here but all around the world,” he said.
As Business Insider has previously reported, a number of Wall Street firms have jumped on the bitcoin bandwagon, including market makers, DRW and DV Trading. Exchange giants CME and Cboe are set to launch bitcoin futures, which will allow investors to bet on the future price of bitcoin, in the near-term. That could open the door to more Wall Streeters entering the fray.
To be sure, Novogratz doesn’t think the road to $40,000 will be without twists and turns. He said 50% corrections could happen on the way.
A former prediction by Novogratz could pan out. In October, he told CNBC that bitcoin could break through $10,000 as soon as March 2018.
Bitcoin was trading at $9,698 per coin at 6:21 p.m. ET, a bit shy of its all-time high of $9,733, according to data from Markets Insider. Bitcoin started the year just under $1,000.