Michael Novogratz Brings His Hedge Fund Plans To A Standstill Amidst Fears Of The Bitcoin Sinking Below $8000

Hedge Fund legend, Michael Novogratz who had recently turned into one of the biggest bitcoin torchbearers has reversed his stand in regards to digital currencies after predicting that it might plunge down to $8000. The 53-year-old was quoted as saying that,

“We didn’t like market conditions and we wanted to re-evaluate what we’re doing. I look pretty smart pressing the pause button right now.”

This announcement came from the hedge fund manager just two days prior to the launch date of his Galaxy Digital Assets Fund on 15th December. The former Bitcoin champion cited an array of factors to potential crypto enthusiasts last week as the background trigger of changing his mind. Novogratz spoke about the prospect of purchasing ether or bitcoin for clients while selling off the crypto investments at the same time in his personal account. He was quoted as saying that, “I didn’t want to have to deal with the schizophrenic emotional side of it. There are just so many conflicts in that business. It was going to be more complicated than I wanted.”

After undergoing a tremendous price hike, the bear entered the crypto market bringing down the price of this cryptocurrency by 42% in the last four days which has been the biggest price slump starting from 2013. The price of Bitcoin dropped down to $10,776 on Friday before bouncing back to $13,268 at 2:27 p.m. in New York. The last time price of Bitcoin lingered below the $10000 mark was on 1st December after which the bitcoin futures was launched by CBOE on receipt of permission for the same from U.S. Commodity Futures Trading Commission. Other forms of cryptocurrencies which had been garnering a lot of positive attention off late such as litecoin and ethereum also fell down the price curve.

Also Read: 6 Bitcoin ETF’s application filled by CBOE to US SEC

However, Novogratz who previously called this phenomenon as the biggest bubble of our lifetime hasn’t yet given up on the same and firmly believes that cryptocurrencies can take up a disruptive shape in the world of finance. Earlier this month he forecasted that bitcoin houses the potential of breaking into the $50000 price barrier within the end of the coming fiscal.

This was about $10000 more than his previous estimate of $40000. He even took to social media to clarify his thoughts regarding crypto assets such as bitcoin on Friday by stating that, “to be clear, we delayed launching a hedge fund with outside investors capital last week because we didn’t like market conditions for new investors,” and adding that he has bullish hopes for the long-term horizon. The Bitcoin millionaire feels that the price of Bitcoin will consolidate in between the $10000 and $16000 mark as the market recovers. But the price will not approach the $20000 mark before the passage of three to four months. He exclaimed that, “when you get kicked this hard, it takes a lot of ice to get the swelling down.”

The market for cryptocurrencies still offers a lot of potential for newer institutions to enter while enhanced regulation might be there to welcome them in coming days. It had been revealed by experts that a trading desk is being set up by Goldman Sachs Group Inc. for developing the market base of digital currencies. While ether and bitcoin was slowly rising the price curve, Novogratz had been selling off the cryptocurrencies held in his personal account. In spite of recording profit figures from a cumulative point of view, Novogratz had lost quite an amount of money with its price plummeting. The former Goldman Sachs trader had wished to make a solid comeback with his Bitcoin based hedge fund in to wall Street arena after tremendous losses forced him to liquidate his macro fund at Fortress Investment Group LLC in 2015. This crypto phenomenon has benefitted Novogratz exceptionally. His purchase dated back to 2015 has helped him secure a $250 million profit in the current fiscal.

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Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.