Rick Wilking / Reuters
- Mike Novogratz said cryptocurrencies are likely to see a “washout” in the short term.
- The billionaire investor predicted that it would be a volatile week after Coinbase’s direct listing.
- Yet he remains bullish and sees bitcoin by the end of the year $ 100,000.
The cryptocurrency market is likely on the verge of an ‘extinction’, billionaire investor Mike Novogratz said, after the Coinbase listing created a frenzy that fueled bitcoin and like dogecoin and XRP.
Novogratz, the founder and CEO of crypto-focused investment firm Galaxy Digital, told MarketWatch in a virtual event: ‘I’ve seen a lot of strange currencies like dogecoin and even XRP, have large retail spikes, which means there’s a lot of madness is. now immediately. “
He added: “It never ends well, and therefore we will probably have a flush out at some point.”
Novogratz also said: “In the next week we could definitely be volatile due to the excitement surrounding Coinbase.”
The currency exchange Coinbase became known on Wednesday and closed with a valuation of $ 65.4 billion, which analysts announced as coming of age for the crypto-word.
The direct listing of Coinbase on the Nasdaq has caused a great deal of excitement about cryptocurrencies. It skyrocketed bitcoin to an overall high of close to $ 65,000 and also moved the ether, XRP and Dogecoin cryptocurrencies to records.
But bitcoin (BTC) has fallen quite sharply to below $ 62,959 since Coinbase’s debut on Thursday.
Despite his warnings about the short-term outlook, Novogratz remains strong on bitcoin, saying Coinbase’s IPO is ‘monumental’ to the industry.
He predicted that bitcoin could reach $ 100,000 by the end of the year and even be worth $ 500,000 within three years.
Crypto entrepreneur Bobby Lee, who founded one of the first exchanges of cryptocurrency, told Insider in March that bitcoin investors need to be more aware of the wild bull and bear cycles of the sign.
He predicted that there would be another ‘winter’ when the currency fell dramatically and remained low for two to three years. But Lee is also clumsy in the long run, saying bitcoin could even reach $ 1 million in future bull runs.