The financial mogul Michael Novogratz, a former Fortress Investment Group executive, stated back in September that he planned to start a cryptocurrency hedge fund. Now according to reports, the former macro trader is putting the hedge fund on hold as he’s not as confident as he once was, regarding bitcoin’s price. Novogratz believes the price of bitcoin is headed for the $8,000 range in the short term.
Also Read: U.S. Bitcoin Futures Markets Pump Up ETF Optimism
Former Fortress Macro Trader Michael Novogratz Once Believed Bitcoin Would Reach $40K by the End of 2018
Bitcoin markets have seen a bearish decline, and the dip seems to be depressing some of the most prominent proponents. Michael Novogratz has been a staunch believer in bitcoin and other cryptocurrencies for quite some time, and back in September, he announced he was creating a digital asset hedge fund. At the time Novogratz said he would build a $500 million dollar hedge fund by initially investing $150M of his own funds. The financial luminary explained the fund would invest in specific cryptocurrencies as well as initial coin offerings. On November 27 Novogratz was extremely bullish predicting the price would continue to gain exponentially in 2018. Novogratz stated on CNBC’s Fast Money:
Bitcoin could be at $40,000 at the end of 2018 — It easily could
Novogratz and Partners Do Not Like Current Market Conditions and Decide to Shelve Cryptocurrency Hedge Fund
However, after bitcoin’s value lost over a third of its value in less than a week, Novogratz is far less confident in the price. Novogratz has detailed to the financial publication, Bloomberg, that he plans to “shelve the cryptocurrency hedge fund” as he sees bitcoin’s price dropping further. The former macro trader believes the price could drop to the $8,000 range in the short term.
“We didn’t like market conditions, and we wanted to re-evaluate what we’re doing,” Novogratz explains during a phone conversation.
I look pretty smart pressing the pause button right now.