Think cryptocurrency prices are inflated today? Wait until next year.
Former hedge-fund manager Michael Novogratz said Monday that the price of bitcoin could quadruple by the end of 2018, and ethereum could triple.
“Bitcoin could be at $40,000 at the end of 2018. It easily could. . . . Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well.”
Novogratz, speaking on CNBC’s “Fast Money,” said the boom in cryptocurrencies is just beginning. “There’s a big wave of money coming, not just here but all around the world,” he said.
Bitcoin BTCUSD, +0.09% topped $9,000 for the first time Sunday, and continued its rocket-like ascent Monday, rising above $9,700. For the year, bitcoin is up nearly 900%.
Ether, the token that’s based on the Ethereum blockchain, rose above $480 on Monday, another record high during a year that has seen its price soar more than 5,000%.
Last month, Novogratz predicted bitcoin topping $10,000 by the end of 2017, and said he’s setting up his own $500 million cryptocurrency fund. “I can hear the herd coming,” he told CNBC at the time, when bitcoin was priced at a little under $4,900.
On Monday, he said the lack of a supply response to growing demand makes cryptocurrencies “a speculator’s dream.”
“As buying happens there’s no new supply response that comes up. So every price move gets exaggerated. It’s going to get exaggerated on the way up. There will be 50% corrections. It will get exaggerated on the way down,” he said.