A major Bitcoin proponent is hoping the current price downturn will not take it under $6500 – and that new institutional investors will trigger a U-turn.
Novogratz: Custody Should Fuel Bitcoin Comeback
In an interview with CNBC on October 24, serial investor Mike Novogratz weighed the options for where Bitcoin was heading.
The largest cryptocurrency saw another split-second drop this week, falling $500 in around five minutes on Wednesday and staying at around $7500 ever since.
“I’m hoping it holds here, but $6500 would be the next downside to knock,” he told the network’s Squawk Box segment.
Novogratz has revealed he is working on a new custody solution for institutional investors worried about the pitfalls of cryptocurrency ownership.
Despite criticism from some that trusting third parties to secure coins undermines the ethos of having crypto altogether, making bitcoin custody easier has become a preoccupation for industry businesses.
For Novogratz, the issue is key to improving Bitcoin’s appeal among the institutional segment. As such, new offerings, including that from Bakkt, should aid a price reversal.
“I think you’ve got to get back through $8200 first… we’re then back in the $8000 – $10,000 range. It’s going to need new energy to really make the big move,” he continued.
Some exciting things are happening… Bakkt just got set up, there’s a futures exchange that’s starting to gain some volume. But more importantly they’ve got a custody solution that’s just coming online… world-class custody which allows more and more people to feel comfortable with it.
Broad Consensus On $6.5K Bottom
Bakkt’s futures product in fact gained somewhat negative press attention when it launched after much delay in September.