Mike Novogratz, a billionaire investor as well as cryptocurrency expert, holds the belief that Ethereum can and most likely will go even higher than it ever has before, despite its current predicament. Novogratz is also the CEO and founder of the widely popular merchant bank known as Galaxy Digital.
It had been during an interview with the New York Magazine that Novogratz revealed the several factors that had collectively convinced him that Ether would continue to rise, and he therefore subsequently explained as to why he remains bullish on the world’s biggest altcoin.
Key factors to consider
Novogratz stated that there was a multitude of factors that he continues to observe. Firstly, he noted that this kind of meteoric rise is not new for Ethereum, as it has been the most successful altcoin in terms of market capitalization for a while now. Despite the fact that there were certain stablecoins that gave ETH a run for its money in 2020, this year saw Ether experience consistent exponential growth, which was largely attributed to its continued technological development as well as NFTs and DeFi both adopting ETH for a variety of purposes. The NFT craze, in particular, had taken the world by storm, and ETH had played a significant part in its success.
Secondly, he says that it is a matter of simple math when it comes to calculating the future price and growth patterns for Ether. Novogratz claims that we could see a 30% increase from the price of $3,825. As of the time of this writing, ETH is trading at $3,298.
Lastly, he says that every single market experiences corrections, but ETH is nevertheless likely to experience massive growth soon, with Novogratz claiming that this possibility has nearly 100% certainty. He even went as far as to say that the cryptocurrency can reach as high as $5,000, although he did mention that it is a bit risky to make predictions based on only the highs.
Novogratz doubled his own investments
Novogratz admitted to doubling his own investments amidst the recent surge of success witnessed by various cryptocurrencies. He admitted that it is a tough time for the industry as a whole, but he did exemplify the fact that this could also serve as an opportunity for those brave and savvy enough to take it.
He went on to state that such drastic volatility is not to be considered as normal behavior and that the cryptocurrency industry being recently considered from a non-asset to an asset class only occurs once.
He concluded by saying that individuals should use this opportunity to invest in buying a house or a car and to basically not have their earnings be wasted due to the aforementioned volatility.