Mike Novogratz, former principal and macro fund manager at Fortress Investment Group, has put its cryptocurrency hedge fund in suspense. He said that the cryptocurrency market could reach again $8,000 dollars in the short term. Mike Novogratz has been supporting Bitcoin and criticizing Jamie Dimon, what happened now?
Mike Novogratz Suspends His Hedge Fund in Cryptocurrencies
During the last days, the cryptocurrency market has been declining. Bitcoin passed from $20,000 dollars to $10,400 in a matter of days. This volatility has caused an incredible spread of FUD (fear, uncertainty, doubt) by the mainstream media, maybe helping the temporary downtrend.
Mr Novogratz has been supporting Bitcoin and defending it from the attacks of other important figures. Back in September, he announced that he was going to launch a cryptocurrency hedge fund starting with $500 million dollars. $150 millions were going to be of his own funds.
During an interview with the CNBC, Novogratz commented:
“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,” he said. “There is a big wave of money coming, not just there but all around the world.”
Everyone likes when Bitcoin goes up indefinitely, but corrections happen, as we have seen several times in the past years. It seems that Mr Novogratz does not like them. He said that he does not like the market’s conditions right now and that they are re-evaluating what they were doing. “I look pretty smart pressing the pause button right now,” he commented during a phone conversation.
Novogratz – Dimon Who is Right?
Mike Novogratz has also been involved in a discussion with JP Morgan’s CEO Jamie Dimon. Novogratz was a big Bitcoin supporter when the cryptocurrency was worth much less than what it does now. Jamie Dimon has said that Bitcoin was going to be ‘crushed’ by governments and regulations and that it will blow up.
Novogratz said that Mr Dimon is a ‘rent taker’ because he is a a banker and he defends his sector. We covered this at CoinStaker.
“Jamie Dimon gets paid to worry about bitcoin because he is a rent-taker. The decentralized revolution is about going after rent-takers. His bank is in the crosshairs of the crypto-revolution. He is going to lose,” he said.
Well, the one that lost was Novogratz, that didn’t start the hedge fund when he announced it. He could be earning much more now and making an incredible revenue from it. The only one that won here is Jamie Dimon’s daughter that bought Bitcoin at the beginning. Now she has doubled her investment or even more. It seems difficult to see Bitcoin again under $10K in the short term, at least.
Who is right? Jamie Dimon or Mike Novogratz? Did Mike Novogratz take a wrong decision by suspending his hedge fund?
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