Showing posts with label Mike Novogratz. Show all posts
Showing posts with label Mike Novogratz. Show all posts

December 01, 2017

How Macro Trader Novogratz became a Bitcoin convert

Bloomberg TV Markets and Finance - September 26, 2017 (

Mike Novogratz, Galaxy Investment Partners founder, discusses his views on Bitcoin and cryptocurrencies with Bloomberg's Erik Schatzker.

Bitcoin is the revenge of the nerds... Unbelievable core of very earnest people, talent going into this field....

This is the largest bubble of our lifetime... bubbles happen around things that fundametally change the way we lives.... 

You can make a whole lot of money on the way up...

It's a dangerous place. I wouldn't tell you to put 100% of  your net worth in it. I think everybody should have some.

November 29, 2017

Billionaire Bull Novogratz - Bitcoin will be the ‘Biggest Bubble of Our Lifetimes’, And that’s okay

By Rebecca Campbell - November 29, 2017 (

Billionaire investor and hedge fund manager Mike Novogratz has made the claim that ‘bitcoin will be the biggest bubble of our lifetimes.’

Speaking at a conference in New York on Tuesday, Novogratz explained that there is a lot of fraud in something that’s ‘exciting’ as the crypto market, reports CNBC, adding:

"I think this [crypto] is going to be the biggest bubble of our lifetimes by a long shot. To be fair, this is a bubble and there’s a lot of fraud mixed in. We look at tons of projects. And some get funded, and they literally look like Ponzi’s".

However, unlike critics who have said dismissed the digital currency as a speculative bubble, the former Fortress manager wasn’t using his bubble comment as a negative connotation. In October, during an interview, Novogratz was asked whether bitcoin’s gains constituted a bubble. Even though he replied in the affirmative, he added that this wasn’t necessarily a bad thing, adding:

"Historically, manias or bubbles happen around things that fundamentally change the way we live. If it’s the railroad bubble or the Internet bubble, it really changed the way we live".

He added that in 10 to 15 years the blockchain and decentralised systems would be in use everywhere, claiming that this bubble is ‘going to be the great manias of all time.’

Since October, bitcoin has not only scaled the $10,000 milestone, but it’s continuing upward trajectory has pushed it up to its current value of $11,147, according to CoinMarketCap, pushing its market total to $185.7 billion for the first time.

The comments from Novogratz, who has compared to bitcoin to digital gold, come at a time when he recently stated that bitcoin could ‘easily‘ reach $40,000 by the end of 2018. Furthermore, he was reported yesterday as saying that the digital currency market cap will reach $2 trillion at the end of next year. At present, it’s worth an impressive $339.1 billion, making it more valuable than Visa and the Bank of America. Slowly, but surely, it’s steadily gaining on the market cap of JPMorgan Chase, at $343 billion, who’s CEO called bitcoin ‘a fraud‘ in September.

However, while Novogratz believes that the cryptocurrency will reach $40,000 by the end of 2018. he doesn’t think that the journey will be smooth sailing.

He added:

"There will be wild crashes in it because you’re going to get to levels so far ahead of where the technology’s at. It makes investing really, really exciting, but difficult".

Since the beginning of the year, bitcoin’s value has, so far, increased by more than 1,000 percent.

Featured image from Flickr/Acumen.

Investors ‘risk’ buying Bitcoin at high prices: ECB Vice President

By Rebecca Campbell - November 29, 2017 (

The vice president of the European Central Bank (ECB) has said that investors are taking a ‘risk’ by buying bitcoin at its high price.

Speaking to CNBC on Wednesday, Vitor Constancio, said:

"It’s a very particular asset, it’s a speculative asset by definition looking to the developments in its price. Investors are taking that risk of buying at such high prices".

Constancio’s comments come at a time when the digital currency is experiencing a surge in value. Earlier today, it was reported that bitcoin had risen to over $11,000 along with a rise in various alt-coin prices. To date, the cryptocurrency has increased by over 1,000 percent, a colossal undertaking considering it was trading at $1,000 at the beginning of the year, and has overcome numerous obstacles.

Some, though, are still expecting great things from bitcoin. Mike Novogratz, a billionaire investor and hedge fund manager, believes that it could ‘easily’ rise to $40,000 by the end of 2018. However, at a recent conference in New York, he stated that it wouldn’t be easy getting there, adding:

"There will be wild crashes in it because you’re going to get to levels so far ahead of where the technology’s at".

Central banks, though, have continually been reluctant to embrace the market. The ECB vice president said earlier this month that digital currencies will never replace the fiat system, adding that they were a ‘misnomer‘ merely used as a speculative asset.

At the time, he stated:

"The so-called private ‘cryptocurrencies’ can never prevail as general money substitutes".

Mario Draghi, the ECB President, has also spoken about the digital currency market, claiming that they aren’t ‘mature‘ enough for the central bank to consider regulating them. More recently, Draghi stated that they pose little threat to the central bank-dependent financial system, despite the rise in the cryptocurrency market.

Not only that, but Constancio believes that central banks don’t need to take the digital currency market seriously. During the interview, he said:

"… in the sense that we don’t have responsibility or even instruments that point to particular prices of particular assets, that is certainly not the role of central banks".

Yet, regardless of the fact that the crypto market, in particular bitcoin, have been criticised by various financial CEOs, it looks as though it has its foot firmly in the door and isn’t going away anytime soon. Not only that, but we may soon be reading headlines that the combined crypto market has become more valuable than JPMorgans.

Featured image from Shutterstock.

November 26, 2017

Bitcoin adds $1,000 to its value in two days; Sets record above $9,000

By Tedra DeSue - November 26, 2017 (

Bitcoin eye spied $9,000 throughout the day on Saturday, and then smoothly sailed over the milestone and hit a new record high like a breeze Sunday.

To put the move in perspective, consider this. 

On Friday, Bitcoin’s low for the day was about $7,958. On Saturday, it began its rebound from $8,227 and never looked back, passing $9,000 at 06:40 UTC today. 

Let’s review some of the chatter out there as Bitcoin keeps soaring higher. 

Predictions coming true?

Just yesterday we reminded you about one industry player in particular who has long premised that Bitcoin would hit $10,000. He’s billionaire hedge fund manager Mike Novogratz.

Clearly, he’s not alone in his optimism, but naysayers had dismissed him and others for their lofty predictions, as they were too distrusting of the long-term theories about the viability of the crypto. 

While Novogratz had earlier this year said the milestone would be achieved some time in 2018, he recently adjusted that target for the end of this year. 

Then there was Fundstrat’s Tom Lee who switched gears, going from bear to bull on Bitcoin this month. He now sees Bitcoin trading at $11,500 by the middle of next year.

What traders saying

Will these predictors who are trying to nail Bitcoin’s price movements go back to the drawing board soon, considering the crypto’s moved $1,000 in two days? 

While it’s always interesting to hear what the money managers and analysts have to say, we took a look at what every day traders are saying.

From Reddit, we found some comments that were noteworthy. 

JustARedditRetard said:

“The biggest percentage change on the weekly this year / run, was 43% back in July. Last week we had a 36% as we ripped fast from the low at 5555. (I'm looking at stamp)

This is still a far cry from the consistent 50%+ weeks that the market witnessed in 2013.

However, the market is bigger, it's slower, it's growing. More participants mean less volatility. This might well be the rate for this run. Next big bull run (Who knows when. We haven't finished this one yet), may average out at 15-20% gains with a couple of weeks at 30%. It's hard to say when a lot of the market dynamics have changed.”

rain-is-wet said:

”I've battled many a Tulip Troll over the years in news comments. Explaining why Crypto has real value and the market reflects that. But how does one defend BTG having $5.6 Billion market cap overnight? I'm sorry but this IS crypto tulip mania. They can't all be this valuable. This can't end well. (Though I think BTC will be OK.)"

November 22, 2017

‘Bitcoin will end the year at $10,000,’ Says billionaire investor Mike Novogratz

BY Bhushan Akolkar - November 22, 2017 (

Renowned Bitcoin investor and crypto-hedge-fund manager, Mike Novogratz believes that Bitcoin can touch $10000 by the end of this year.

Legendary hedge fund manager and a billionaire trader – Michael Novogratz – is yet again seen pumping confidence in Bitcoin investors with his recent prediction.

It was just last month in October when Novogratz predicted Bitcoin to touch $10,000 in a time-frame of six months from then i.e. possibly my April 2018. However, these predictions were made before the announcement of Bitcoin-futures contract by CME group which catapulted Bitcoin prices to an unprecedented rally from over $5,500 to $8,000.

Now, in his recent interview with Bloomberg, Novogratz seemed to have turned more bullish than he was a month earlier and has reduced the time-frame of his previous to the end of this year. This means that as per Novogratz Bitcoin prices could touch $10,000 by this year-end.

Novogratz compared Bitcoin to an asset like gold calling it as the new ‘digital gold’ stating that “gold has value solely because people say it has value; bitcoin is built on an amazing technology, there’s a limited supply of it.

This whole revolution came out of a breakdown in trust in the 2008 crisis.” In addition to this, Novogratz also believes that the second-most popular cryptocurrency Ethereum will also surge considerably and trade above $500 by the year-end.

Mike Novogratz is very bullish on the future of Bitcoins and has established a $500 million Galaxy Digital Assets Fund which is the biggest-of-its-kind crypto-hedge-fund. The fund will focus on investing in the blockchain and cryptocurrency space looking to its revolutionary applications and a great future potential.

Novogratz’s hedge-fund has already started active investments in the blockchain space with its first investment in Worldwide Asset eXchange (WAX) which is a decentralized blockchain platform for the development of secure and transparent online in-game virtual item exchanges.

Following Novogratz’s comments, Bitcoin prices were seen shooting up again above $8300 after the prices fell by over 5.4% on yesterday’s news of $31 million worth Tether tokens getting stolen. Novogratz comments however instilled back the lost optimism in the market. It has to be noted though that Bitcoin has witnessed quite a bumpy ride in the past month with a huge volatility and price fluctuation.

According to CoinMarketCap, currently, it is trading at $8253.41 and is seen to be consolidating there. Commenting on the latest price fluctuations in Bitcoin prices, Novogratz said: “We’re in the second or third inning. 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.”

The ambitious launch of $500 million worth crypto-hedge-fund marks Novogratz comeback as a prominent investor after suffering major losses at Fortress Investment Group LLC. Novogratz, who was away from Wall Street for over two years is back in action and is quite optimistic about the new blockchain revolution and the world of virtual digital currencies.

However, many of his peers from the Wall Street are quite skeptical about cryptocurrencies with some few prominent personalities like Jamie Dimon even calling Bitcoin as a big “fraud”. Neil Dwane of Allianz Global Investors said it’s a “scam for criminals around the world,” while Larry Fink of BlackRock Inc. said Bitcoin to be the best tool for money laundering activities.

Quickly pointing out to all his critics, Novogratz who is currently 52 said: “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.”

In addition to Novogratz, there are several other prominent figures who have increased their targets for Bitcoin prices after the recent bull run. Standpoint Research’s Ronnie Moas has corrected his target second time this month from $11,000 to $14,000. There are several factors which can contribute to next upward journey for Bitcoin from here.

October 11, 2017

A former hedge funder thinks Bitcoin will hit $10,000 in 6-10 months and be 'one of the great manias of all time'

By Akin Oyedele - October 11, 2017 (

The Bitcoin bubble will continue blowing up until it inevitably pops, according to Michael Novogratz, a former manager at the $72 billion investor Fortress.

"It would not surprise me if, in the next six to 10 months, we're over $10,000," Novogratz told CNBC on Tuesday. Bitcoin traded near $4,823 per dollar at 11:31 a.m. ET on Monday, up 657% for the year.

At a recent meeting with institutional investors in San Francisco, he realized the "herd" was approaching to cash in on the booming demand for cryptocurrencies. The CEOs of major investment banks including Morgan Stanley and Goldman Sachs have recently commented publicly on bitcoin.

Novogratz is starting a $500 million crypto fund that invests in bitcoin, ethereum, and initial-coin offerings.

"Yes, it's a bubble," Novogratz said. "It's going to be one of the great manias of all time."

He said bubbles typically happen around things that that fundamentally change the way we live, like railroads and the internet. 

"We could never have understood the ubiquity of the internet in 2017 even at the height of the bubble," Novogratz said. "Ten years, 15 years from now, blockchains and decentralized systems will be everywhere."

Bitcoin is the bellwether of this "decentralized revolution" and is the easiest way for investors to get exposure, Novogratz said. He's betting that the underlying technology of bitcoin, which creates a decentralized and permanent ledger of every transaction made on the network, will thrive into his four kids' adult lives. 

"One day their boyfriend's going to give them digital flowers and they're going to enjoy the flowers," Novogratz said. "My mom would say 'I want real flowers.' As we move into a digital world, having a digital store of value makes more and more sense."

Akin Oyedele

Akin joined Business Insider in 2014. He previously wrote for Bloomberg News. He studied at Columbia Journalism School and the University of the Witwatersrand in Johannesburg.

September 27, 2017

A former CIO at $72 billion Fortress is starting a $500 million cryptocurrency hedge fund

By Frank Chaparro - September 27, 2017 (

Michael Novogratz, President of Fortress Investment Group, speaks at the annual Skybridge Alternatives Conference (SALT) in Las Vegas May 6, 2015.  REUTERS/Rick Wilking
The explosive growth of the cryptocurrency market has converted Mike Novogratz, a former manager at Fortress, the $72 billion money manager, into a bitcoin evangelist.

And now he's reportedly raising $500 million for a new cryptocurrency hedge fund, according to Bloomberg News.

Novogratz declined to comment about the crypto-fund during an interview with Bloomberg TV, but a person familiar with the matter told Bloomberg Novogratz will put up $150 million of his own money and seek out additional cash from "family offices, wealthy individuals and fellow hedge fund managers."

Still, Novogratz did admit to Bloomberg that there are plenty of opportunities to make money in the cryptocurrency space.

“This is going to be the largest bubble of our lifetimes,” Novogratz said to Bloomberg. “Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it.”

Already, the billionaire actively trades bitcoin himself. 

“I sold at $5,000 or $4,980,” he told Bloomberg. “Then three weeks later I’m trying to buy it in the low $3,000s. If you’re good at that and you’re a trading junkie, it’s a lot of fun.”

The so-called Galaxy Digital Asset Fund would be the largest cryptocurrency fund, according to Bloomberg. But it would not be the first. Autonomous NEXT, a financial technology analytics firm, has been keeping track of all the crypto funds out there and at last count there are at least 75 in existence. 

Lex Sokolin, a partner at Autonomous NEXT, told Business Insider the firm estimates total assets managed by such firms to stand somewhere between $1.5 and $2 billion. 

"Like wild mushrooms, crypto hedge funds have been taking root in the volatile and unregulated soil of the crypto economy," Autonomous NEXT said in a post on their website.

Many of the firms sport crypto-themed names such as Ether Capital, an homage to the token powering the ethereum blockchain, and Medici Crypto.

The meteoric rise of digital currencies such as bitcoin, which is up nearly 570% since 2016, and ether, which is up 2,100% over the same period, has drawn the attention of Wall Street. On top of this, the market for initial coin offerings, a fundraising method based on blockchain technology, is exploding with over $2 billion raised via ICOs since the beginning of the year, according to Autonomous NEXT. 

Even traditional hedge funders are paying attention. 

"We have seen managers invest in the actual currencies and/or in the ICOs, and soon there will be derivatives as well,” Steve Nadel, a hedge fund attorney, and partner at Seward & Kissel, said in an email sent to Business Insider.

"Cryptocurrencies have garnered a fair amount of interest in the investment management space, primarily because of the returns they have recently shown," he said.