Former Hedge Fund Billionaire Makes The Case For $20,000 Bitcoin Price By The End Of 2020 – Forbes

Bitcoin has rocketed higher over the last few days, breaking months of inaction and sparking excitement among bitcoin investors.

The bitcoin price, still about half its all-time high set in late 2017, rallied almost 20% in less than a weekpeaking at just over $11,400 per bitcoin on Monday evening before falling back.

Now, former hedge fund billionaire-turned crypto investor, Michael Novogratz, has said he expects the bitcoin price to hit $20,000 by the end of the yearfueled by a global "liquidity pump" and an influx of retail investors.

Michael Novogratz, a Wall Street veteran, has become one of bitcoin and cryptocurrency's richest ... [+] investors in recent years, making a name for himself as a bitcoin bull.

"The liquidity story isn't going to go away. We're going to get a big stimulus," Novogratz, the founder and chief executive of bitcoin and crypto merchant bank Galaxy Digital, told CNBC, adding, "it doesn't look like the Federal Reserve is going to raise rates."

U.S. Republican lawmakers unveiled plans for a $1 trillion stimulus package on Monday that includes another round of $1,200 payments and additional funds for small-business loans. However, U.S. investors sent stocks lower as markets braced for a prolonged period of negotiation between Democrats and Republicans.

Meanwhile, the gold price, which Novogratz also sees climbing in coming months, lost momentum after coming within touching distance of $2,000 for the first time.

"Yesterday, you saw a lot of money shift back over to gold and bitcoin," Novogratz said, pointing to "a lot of retail interest in [bitcoin]."

Retail traders switching from stocks to bitcoin amid fresh government stimulus could send the bitcoin price to $14,000 within the next three months and as high as $20,000 by the end of the year, according to Novogratz.

Novogratz also said he's beginning to see institutional investors move into bitcoin but warned Wall Street investors may face a learning curve compared to gold.

"Gold has been around for 3,000 years. It's pretty easy to buy," he said. "There's an adoption game in bitcoin that you don't have in gold."

The bitcoin price broke months of stagnation over the last few days, soaring above $11,000 per ... [+] bitcoin for the first time this year.

Novogratz's prediction is somewhat supported by reports coming out of bitcoin and cryptocurrency exchanges.

"As bitcoin and other digital currencies are easier to access than ever before, were seeing a surge in bitcoin interest as the market anticipates that second stimulus bill," Catherine Coley, CEO of BinanceUS, said via email.

BinanceUS saw bitcoin trading volumes hit an all-time high on its platform as the price surged on Monday, according to Coley.

However, despite the latest bitcoin price surge, the bitcoin options market is signalling just an 8.5% probability of bitcoin at over $20,000 at the end of the year, data from crypto derivatives analytics firm Skew showed, up from 7% on Monday morning.

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Former Hedge Fund Billionaire Makes The Case For $20,000 Bitcoin Price By The End Of 2020 - Forbes