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

bitcoin price

Hedge fund legend Mike Novogratz used last weekend’s bitcoin price decline as an opportunity to deepen his BTC position by $15 million to $20 million.

Speaking at the Reuters Global Investment 2018 Outlook Summit Novogratz — a billionaire macro trader and former principal at Fortress Investment Group — explained that he sees the recent bitcoin price decline as a buying opportunity, not a cause for concern.

After peaking above $7,700 on November 8, the bitcoin price crashed in the aftermath of the indefinite suspension of bitcoin scaling proposal SegWit2x, which had been scheduled to activate this week. The global average bitcoin price tumbled approximately $2,200, eventually reaching a November low of $5,519 on November 12, according to CoinMarketcap.

bitcoin price
Source: BitcoinWisdom

This unexpected bearish turn left many investors panicking, but Novogratz says that he bought between $15 million and $20 million worth of bitcoin during the dip. Despite the weekend pullback, he believes the bitcoin price will reach $10,000 by March on the heels of increased attention from institutional investors. He says the herd will arrive once a mainstream firm begins offering crypto assets as investment options.

“When it’s that easy, the price of bitcoin or ethereum is going to go much higher. And that is a lot closer than people think,” he said, adding that it could happen within the next six months.

Novogratz recently announced the creation of Galaxy Investment Partners, a blockchain-focused hedge fund whose largest single position is in bitcoin. He has invested approximately $100 million of his own capital in the fund, and he intends to raise $500 million, which will make Galaxy the largest fund of its kind.

March is still four months away — an eternity in the crypto economy — so it remains to be seen whether Novogratz’s price target will be realized. However, his bullish bet is already paying off. The bitcoin price has already recovered by more than $1,000 since Sunday. Depending on when he placed his buy orders, the value of his weekend purchases may have already increased by several million dollars.