Billionaire cryptocurrency bull Mike Novogratz believes the market will see a rally in Q1-Q2 2019 from institutional buying.
Talking on Bloomberg, Novogratz made his comments on the same day that Fidelity – the fourth-largest asset manager in the world – announced their first concrete plans for institutional cryptocurrency products.
Novogratz highlighted institutional desire for custody products, which Fidelity are aiming to offer and talked about the “credible” names that are now entering the market and boosting investor confidence in the space. The Galaxy Digital investor said that Fidelity should be running by Q1 2019 and once the market “runs some water through the pipes”, the rally will develop through Q2.
Boston-based Fidelity, who currently have $7.2 trillion in assets under management (AUM) have announced that they are setting up a standalone company named Fidelity Digital Assets. The company plan to offer trading and custody services for institutions only, however the move will add further weight to the sector that will ultimately lead to further retail volume.
Mike Novogratz went on to state his thoughts on Bitcoin, where he saw $6,800 as an important level to break to get people excited, with $10,000 being a “big number”. He stated that new highs in Bitcoin were possible in early-2019 if the institutions start getting involved.