Galaxy Digital experts say the current price jump is the prelude to the new bubble. The company’s analysts presented their vision in a note for clients published on December 20th.
Bitcoin (BTC) exceeded the threshold of USD 4,000, which quickly aroused enthusiasm of the market and analysts, who should, however, maintain a cooler attitude. In spite of the latter, the stock market bull and founder of Galaxy Digital Mike Novogratz has now passed on to its clients that cryptocurrency markets may grow dynamically in the near future.
Introduction to the bubble?
In the company’s note titled “Why this rally can last longer than you think”, Galaxy Digital experts say that what we now see in the charts is an introduction to the new bull market. We read exactly:
“Short increases are exactly what happens before a real rally.”
The note mentions two important events for the cryptocurrency industry. Both are related to the entry of institutional investors on the market.
The American investment firm Fidelity has announced the introduction of a commercial service targeted at institutional investors. The Bakkt digital asset platform, founded by the Intercontinental Exchange (ICE), has recently confirmed similar plans related to cryptocurrencies.
Is it worth believing bulls?
The founder of Galaxy Digital Mike Novogratz recently expressed optimism about the future fate of the price on the Bitcoin chart. He said that he did not expect the price to go down. On the other hand, its bullish forecasts did not work throughout the whole year, which significantly undermined its authority in the eyes of investors who are interested in the digital currency market.
Novogratza’s image is not improved by recent media reports, according to which its Galaxy Digital lost as much as 136 million dollars in the first three quarters of 2018. This is obviously the result of significant declines in the cryptocurrencies. Throughout the year, Bitcoin was cheaper by more than 80 percent, falling from the record level of $ 20,000 from December 2017 to $ 3,000.
So, this time, the experts from Novogratza are right and will soon have a new bubble waiting for us? This seems doubtful considering the patterns of previous cycles. The year 2019 should be rather marked by stable, slow increases or a side trend. On the other hand, the main cryptocurrency has surprised investors a number of times …