Wealthy investor Mike Novogratz speculates that bitcoin could be worth $ 100,000 by the end of 2021 and sees that value increase fivefold by 2024 as the burgeoning crypto market continues to evolve and grow. But first, the industry may be faced with a short-term settlement.
The CEO of Galaxy Digital GLXY,
and prominent crypto proponent said a lot of euphoria has been generated by the Coinbase COIN,
IPO, however, warned that the market could wait for “a washout.” He pointed out the zeal for alt coins – or alternatives to bitcoin – such as dogecoin and XRP XRPUSD,
the token running on the Ripple Labs protocol, prior to Coinbase’s offering.
“We could certainly have some volatility over the next week due to the excitement around Coinbase,” the former Goldman Sachs GS,
said partner during the second week of an Investing in Crypto virtual event series hosted by MarketWatch and Barron’s on Wednesday.
“I’ve seen a lot of weird coins like dogecoin and even XRP have massive spikes in retail, which means there’s a lot of madness right now,” Novogratz said. “That never ends well, so we’ll probably get a washout at some point,” he said of the broader market.
That said, Novogratz remains bullish on bitcoin and Coinbase in general, saying he considers Coinbase’s IPO to be “monumental” for the crypto industry.
Coinbase closed more than 30% off its reference price of $ 250 on Wednesday, at one point it hit a market value of more than $ 100 billion. It closed at $ 328.28, down from its intraday peak at $ 429.54.
Ahead of the Coinbase list, bitcoin BTCUSD,
hit a record close to $ 65,000 and dogecoin’s value soared to a record over 10 cents, representing a daily increase of over 20% for the digital asset created as a joke currency in 2013 and is a meme become in the social media community.
Meanwhile, XRP coins are up 88% so far this week.