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This Crypto Bull Calls For Bitcoin To End The Year At $10,000

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This Crypto Bull Calls For Bitcoin To End The Year At $10,000

(Kitco News) - Even though bitcoin already surprised markets by breaching the $8,000 level for the very first time this week, one cryptocurrency bull is saying that $10,000 will be the digital currency’s year-end price.

Bitcoin’s rally this year is nowhere close to being finished, Mike Novogratz, chief executive of Galaxy Investment Partners and former head of the Fortress Investment hedge fund, told Bloomberg on Tuesday.

Novogratz described bitcoin as digital gold.

“Gold has value solely because people say it has value; bitcoin is built on an amazing technology, there’s a limited supply of it,” he said. “This whole revolution came out of a breakdown in trust in the 2008 crisis.”

The hedge fund manager estimated that bitcoin will end the year at $10,000, while its competitor ethereum will rise to $500.

According to Kitco’s aggregated charts, bitcoin was last seen trading at $8,124.90 and ethereum at $360.55. 

Volatility is to be expected with bitcoin trading, cautioned Novogratz.

“We’re in the second or third inning,” he said. “Because prices have moved so far people are nervous. You made a whole lot of money, there’s news, so you want to book your profit and get out.”

Following Novogratz’s comments bitcoin recorded its all-time high, reaching $8,380 earlier on Tuesday.

Novogratz is currently raising capital for the Galaxy Digital Assets Fund — a cryptocurrency fund expected to hit $500 million.

The hedge fund manager, who is 52, disagrees with many of his former Wall Street colleagues about bitcoin.

He points to age as a key factor in this. “All of those guys are over 60 and I’m not. There’s some truth to that in that it’s difficult for someone who didn’t grow up in a digital world to understand that we’re moving into a digital world.”

Earlier this fall, JPMorgan Chase & Co. chief Jamie Dimon called bitcoin a “fraud” and described the people who invest in it as “stupid.”

“The currency isn't going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart,” he said in September.

Another key figure, Neil Dwane of Allianz Global Investors, said bitcoin is a “scam for criminals around the world,” while Larry Fink of BlackRock Inc. called the digital currency an index for measuring the demand for laundering money.

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