bitcoin price

Billionaire trader Mike Novogratz said that he had shelved plans to launch a $500 million crypto hedge fund after the cryptocurrency markets entered a $180 billion tailspin on Friday.

Novogratz Shelves $500 Million Crypto Hedge Fund as Bitcoin Price Retraces

Novogratz, a former Fortress principal, had stated on Dec. 12 that he intended to launch Galaxy Investment Partners “by the end of the week,” rapidly moving up a timetable that had originally planned the fund’s launch for the first quarter of next year. With a $500 million target, the crypto hedge fund was expected to be the largest of its kind.

However, on Friday the long-time bitcoin bull revealed that he had not only not launched Galaxy Investment Partners last week as planned but had also shelved the crypto hedge fund indefinitely, according to a Bloomberg report.

“We didn’t like market conditions and we wanted to re-evaluate what we’re doing,” Novogratz said in a phone interview. “I look pretty smart pressing the pause button right now.”

The revelation of the abrupt reversal comes as the cryptocurrency markets have entered a severe correction following a parabolic run-up. After reaching an all-time high of $19,891 on Dec. 17, the bitcoin price plunged to a nearly three-week low of $10,700 on Friday morning, according to data from Bitfinex.

‘When Insiders Sell It Always Is Important’

Novogratz — who recently predicted that the bitcoin price would hit $40,000 in 2018 — said that he now believes the bitcoin price could retrace as far as $8,000 before resuming its bullish rally.

“Looks to me like a short-term top is in,” he wrote on Twitter. “My hunch is we consolidate between 10-16k for a while. Extreme would be 8k. Bull market isn’t over. Just pausing.”

Elsewhere on Twitter, he appeared to lay part of the blame for the correction on Litecoin creator Charlie Lee, who revealed earlier this week that — to avoid a “conflict of interest” — he had sold his entire LTC balance and donated the proceeds to undisclosed organizations.

“When insiders sell it always is important,” Novogratz said.

Featured Image from Bloomberg/YouTube

jim cramer

Bestselling author and “Mad Money” host Jim Cramer warned prospective bitcoin investors that cryptocurrency is more like “Monopoly money” than a true asset and advised them to put their money somewhere less risky — a craps table, for instance.

Cramer, a former hedge fund manager who is best known for his market commentary on CNBC, made this sensationalist claim about bitcoin on the Wednesday episode of “Squawk Box”.

“It’s kind of like monopoly money,” Cramer said. “Obviously, there’s people who use it. If you ever say anything bad about it, there’s like this ‘bitcoin mafia’ that comes after you. But it is an oddity that has nothing to do with us” as investors.

Commenting on the recent bitcoin price upswing, Cramer alleged that buying bitcoin is “pure gambling” — not investing — and that those with the urge to gamble should go to Las Vegas instead.

“It’s just pure gambling at this point,” Cramer continued. “I mean if you want to gamble, go to Vegas. Vegas is fabulous.”

This was not the first critical statement Cramer has levied against bitcoin. Last week, he argued that its “parabolic” movement confirmed that it was in a bubble. He has also stated that announcements such as Square Cash’s bitcoin pilot program have made “people feel better” about cryptocurrency, causing it to steal some of gold’s luster

“I mean honestly, what’s the difference between bitcoin and trying to figure out the Super Bowl? I mean it’s gambling,” Cramer concluded.

Despite Cramer’s frustration, however, bitcoin continues to march forward at a breakneck pace. The bitcoin price ripped through the $14,000 mark on Wednesday evening, punctuating a single-day surge that saw bitcoin rise more than $2,000, or 20 percent. At the time of writing, bitcoin was trading at a global average of $14,510, according to the BlockExplorer bitcoin price index.

The impetus for the rally is most likely linked to the impending launch of bitcoin futures on Sunday afternoon, an event that many analysts believe will prove to be a watershed moment for cryptocurrency adoption.

Featured Image from CNBC