The Bitcoin bull predicts that prices will triple by 2021 – but fears of a "collapse" of stocks

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Bitcoin's bull, Michael Novogratz, told CNN Business that cryptocurrency will triple over the next 18 months and return to its all-time high at nearly $ 20,000.

"From the rubble, bitcoin is back up," Novogratz said on the sidelines of the SALT conference in Las Vegas.

Cryptocurrency, whose reputation is volatile, is currently worth about $ 6,000, against $ 3,100 last December.

Novogratz, a former hedge fund manager and investment banker with Goldman Sachs, does not believe that bitcoin will return to these lows. The problem would be that there is a devastating hacking against a cryptographic exchange or a sudden change in regulation.

"It would take something like this to break that newfound trust," said Novogratz, founder and CEO of Galaxy Digital, an encryption bank.

Hackers steal $ 40 million worth of bitcoins in massive security breach
Confidence does not seem to have been shaken by a massive security breach in one of the world's largest currency exchanges. Bitcoin prices have risen despite news that hackers have stolen $ 40 million worth of bitcoins from a Taiwan-based company called Binance.

"For institutions to feel comfortable, we need to have a lot less," he said.

Novogratz urged cryptographic exchanges to "self-regulate" to enhance their security and build confidence in Bitcoin.

"A little railing can go very far," he said.

Others remain deeply skeptical about Bitcoin, in part because of extreme price fluctuations.

Nouriel "Dr. Doom" Roubini hit Bitcoin on Wednesday at SALT as "mother and father of all the bubbles and all the busts". Roubini, a professor at New York University, noted that the Bitcoin crash far surpassed the dot com bubble and even the tulip madness of the 1630s.

Bitcoin has "no future as a currency" and is subject to "massive manipulations," Roubini said.

Stock Market & # 39; Frothy & # 39;

While Novogratz remains hyper-bull on Bitcoin, he is concerned about over-exploitation on the stock market.

"We have a chance of a merger of shares.You see it in the excitement of IPOs," Novogratz said.

On Friday, Uber will be public as part of a large-scale IPO, which is expected to yield about $ 9 billion or more. Last week, Beyond the meat (BYND) increased by 163% on the day of its IPO. According to Dealogic, he was the number one US company for the first time on the first day of its history since March 2000, when Palm Inc. became public.
Michael Novogratz, CEO of Galaxy Digital, warned against falling interest rates in a strong economy.

"These frenzies rarely last, gravity returns to the game," said Novogratz.

Even though he does not believe the market is at the top, Novogratz sees signs that things are becoming "frothy".

"The markets usually end with a super peak, with a hot frenzy of activity," he said.

The Fed could cause a "merger"

The Federal Reserve could be a catalyst for this kind of euphoria.

President Donald Trump has urged the Fed to cut interest rates by one percentage point – a surprising step normally reserved for a crisis and not a healthy economy.

"Making a monetary policy mistake by reducing a strong economy could lead to a quick merger – and that could be the end," said Novogratz.

Similarly, billionaire Sam Zell announced Wednesday a "disaster" if the Fed listened to Trump by lowering interest rates sharply. According to Zell, such a move would be a huge blow to the US dollar.
The US economy is swimming in jobs. Ask for a lowering of rates, that's crazy
Stephen Moore, a controversial Trump campaign advisor, told the SALT audience that he was "so stupid" for the Fed to raise its rates last year. Moore, who last week under pressure, withdrew his name from the Fed's membership, called on the US central bank to quickly lower its rates.

Moore also hailed the Republicans' tax cuts, saying that they were working "even better than we thought."

Asked about Moore's comments, Novogratz questioned the wisdom of the administration's decision to "lower taxes in a strong economy" and widen America's budget deficit.

"I'm glad Stephen Moore is not part of the Fed," Novogratz added.

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