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Novogratz says that Bitcoin May drop to $8K, puts Crypto-Hedge Fund on halt

Dec 23, 2017 Posted /  7354 Views

Novogratz says that Bitcoin May drop to $8K, puts Crypto-Hedge Fund on halt

It made the prime time headlines when in September 2017 Michael Novogratz, the former Fortress Investment Group executive, stated that he is preparing a setup to begin a cryptocurrency hedge fund. At the present moment the reports in the media suggest that the prior macro trader is making the hedge fund on hold. As reported by the Novogratz said that he is not as sure as he once was, regarding bitcoin’s price, however he has made the prediction that the price of bitcoin may dip to the $8,000 range in the short term.

Bitcoin markets are witnessing a bearish decline, and the drops seem to be disheartening some of the most outstanding proponents. Since long time Michael Novogratz has been a staunch supporter of bitcoin and other digital currencies and at the time he announced creating a digital asset hedge fund, he said he would develop a $500 million dollar fund by first contributing $150M personal funds in the idea. The fiscal celebrity elucidated that the fund thus created would be utilized to invest in certain cryptocurrencies as well as ICOs.

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The reports on November 27 claimed extremely bullish forecasts by Novogratz. The media circulated that the price would gain aggressively in 2018. In an expert talk by the CNBC Novogratz stated that the Bitcoin could reach $40,000 easily at the end of 2018. However, after bitcoin’s dropped low (over a 30% of its value in 4 days) Novogratz seems far less confident in the price. In a Bloomberg article Novogratz detailed that he traversing and may hold the cryptocurrency hedge fund as he thinks that bitcoin’s price much stoop further.

If the specific statement by Novogratz is to be believed, the former macro trader is speculating a drop to the $8,000 range in the short term. Novogratz says that he and his partners feel that the market conditions are not favorable, and they may re-evaluate their strategy. Further he remarked that pressing the pause button seems to be the smart option at present.

Nonetheless, the decision by Novogratz may occurred simultaneously with the contemporary launch of futures contract trading of bitcoin introduced by the CBOE and CME Group. Additionally various firms were more hopeful about the initiation of bitcoin-based exchange-traded funds (ETF) after the bitcoin futures products were introduced. Analysts consider the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) will in the coming time endorse ETFs lately filed by Rex, Vaneck, Protoshares, and the NYSE.

Novogratz’ pronouncement to pause the hedge fund agenda depicts that the recent dip has stunned conventional investors. Conversely, the present Bitcoin price drop has not enthused long-term bitcoin enthusiasts.

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Tags: Bitcoin 8K Novogratz btc drop

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