Bitcoin has been swinging wildly over the last week as the market struggles to hold onto massive gains made so far this year, raising fears the latest bitcoin bubble might have already popped.
The bitcoin price has swung from highs of $13,880 per bitcoin to lows of $9,610 over the last week, at one point losing 30% of its value. Meanwhile, ethereum has also lost ground over the last week though has not matched bitcoin’s significant strides higher in recent months.
Now, Mike Novogratz, the hedge fund manager-turned-chief executive of bitcoin and crypto investment group Galaxy Digital, has warned it could be some time before bitcoin regains its lost ground and problems for “web 3.0 wannabe” ethereum could drag on.
“[Bitcoin] had a spectacular rally,” Novogratz told Bloomberg, a financial newswire. “The last $3,000 of that was a parabolic move where everyone got excited and for good reasons.”
“I wish I’d sold more. There was too much energy in the market. I don’t think I’m selling again in the next run-up to $14,000 [per bitcoin]. [My selling point] is probably closer to $20,000 [but] I don’t expect that in the next few weeks. It will more likely be towards the middle to the end of the third quarter.”
Bitcoin, as well as ethereum’s ether, have again rallied over the last 24-hour trading period, somewhat relieving traders and investors who had feard the bitcoin price could be heading even lower.
Novogratz pointed to interest from the world’s biggest technology companies, including iPhone maker Apple and social media giant Facebook, as triggering the recent bitcoin rally but warned, “you’re going to see some consolidation between $10,000 and $14,000 for a while before we hit the next stage higher.”
“The next wave higher will come with [U.S. states and unions] and then we might see bitcoin go to $20,000 and higher.”
Novogratz also cautioned that there has been price manipulation across bitcoin and cryptocurrency markets, though proposed this would become less of a problem as more people begin buying into bitcoin through the likes of payment giants Visa and Mastercard.
While Novogratz remains bullish on bitcoin in the long term, he warned ethereum will face more hurdles in its mission to become “web 3.0.”
“Bitcoin has carved out an interesting lane being digital gold, it doesn’t need to change to fulfill its mission,” Novogratz said. “Ethereum is fighting to be web 3.0. It’s a really ambitious project, there’s a lot of technical work to be done for it to scale properly and for it to be usable. It’s also competing against lost of other projects.
The likes of tron and EOS are both competing with ethereum to become the de facto host of decentralized apps.
“They’re all fighting for a piece of the pie,” Novogratz added.