Former hedge fund manager and founder of cryptocurrency investment firm Galaxy Digital Michael Novogratz has predicted the price of bitcoin will more than double to $100,000 by the end of this year as “every” company in the U.S. will buy BTC.
Speaking during a Bloomberg Television interview, Novogratz reacted to Tesla revealing it had invested $1.5 billion of its corporate cash reserves into the flagship cryptocurrency and is set to accept BTC payments for its services in the near future, saying its CEO Elon Musk is a “genius” for his decision to “listen to the people.”
Novogratz added he believes the price of BTC will go to $100,000 this year as corporate adoption will keep on growing, he said: “You’re going to see every company in America do the same thing. It doesn’t have to be a lot. It’s the messaging that matters, you’re seeing the herd here, and it’s coming.”
The cryptocurrency enthusiast and investors speculated companies may keep moving a part of their reserves to bitcoin as a hedge against inflation and a falling dollar and pointed out that the interests of a rising generation include cryptocurrencies, Tesla, solar stocks, and ESG investing.
Young people, he added, are “buying into the future” and they see cryptocurrencies “as their currencies.” Novogratz’ Galaxy Digital, it’s worth noting, has an estimated 16,402 BTC bought for $134 million. The coins are now worth over $760 million.
Nasdaq-listed business intelligence firm MicroStrategy has also invested heavily in BTC. The firm invested a total of $1.145 billion in BTC to buy 71,079 coins, which are now worth over $3.28 billion. Bitcoin’s volatility is believed to be keeping risk-averse CFOs from making it a part of corporate treasuries.
Novogratz pointed out the richest man in the world has now invested in the cryptocurrency, which likely saw CFOs and CEOs thinking about what they should be doing about the flagship cryptocurrency. After Tesla’s bitcoin buy was announced, the price of BTC surged to a new high above $48,000 before correcting.