Michael Novogratz Predicts Bitcoin Declines Won't Get (Too Much) Worse

(Bloomberg) -- Michael Novogratz doesn’t expect Bitcoin’s price declines to deepen much more, despite a dismal run for virtual currency investors in 2018.

The chief executive officer of cryptocurrency merchant bank Galaxy Digital Holdings Ltd. said that amid convulsions in the world economy, the macro trading environment has become even more interesting than the market for digital currencies.

“We are entering a cool era for macro,” Novogratz said in an interview on Bloomberg Television on Tuesday. “Crypto is less exciting now versus macro. Macro got quite boring for many years, and crypto was really exciting.”

Novogratz, a former hedge fund manager and Goldman Sachs Group Inc. partner, said the price of Bitcoin is likely to stay between $3,000 and $6,000 in the foreseeable future.

Michael Novogratz Predicts Bitcoin Declines Won't Get (Too Much) Worse

The digital asset has fallen about 75 percent this year, leaving behind its December 2017 run-up. Bitcoin was trading at about $3,525 at 11:42 a.m. on Tuesday. The crash in crypto prices has dampened some of the enthusiasm that bubbled up around virtual currencies last year.

Novogratz said that, despite the bubble bursting, Bitcoin is likely to endure as a store of value.

“This is a mania built on something real,” Novogratz said. “I am certain we will have a digital store of wealth. I think it will be Bitcoin.”

©2018 Bloomberg L.P.