Bitcoin could more than double in price by the end of the year as more firms allow customers to use it to make purchases, says Michael Novogratz, the founder of cryptocurrency investment firm Galaxy Digital.
The price of the crypto coin blew past an all-time high of $48,000 in early Asia trading on Tuesday, driven by Tesla’s announcement that it had bought $1.5 billion worth of bitcoin. The company also said it will allow customers to buy its electric cars with the coins.
“You’re going to see every company in America do the same thing,” Novogratz told Bloomberg Television, adding “It doesn’t have to be a lot. It’s the messaging that matters, you’re seeing the herd here, and it’s coming.”
A long-time crypto enthusiast and investor, Novogratz said that other companies would consider moving excess reserves into bitcoin, perhaps as a hedge against inflation or against a falling US dollar.
He also said that Tesla CEO Elon Musk was a “genius” in his decision to “listen to the people,” or weighing the interests of a rising generation. “One of the things that connect bitcoin, and Tesla and solar stocks and ESG investing is millennials and Gen Z, young people are buying into the future, and they see cryptocurrencies – bitcoin and other currencies – as their currencies,” Novogratz said.
“Now you got the biggest, the wealthiest man in the world and one of the biggest stories doing it,” Novogratz said. “You’ve got to think other CFOs and CEOs are saying, what should we be doing?”
Bitcoin was trading at $47,798 as of 08:40 GMT on Tuesday, up over 20 percent in the past 24 hours. The cryptocurrency has risen about 67 percent year-to-date.
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