Bitcoin would need to more than triple to reach Novogratz’s target. In November 2017, the former hedge fund manager had forecast that the coin would reach $40,000 by the end of the following year, only to see it finish below $4,000.
The most bullish mainstream projections are those that see Bitcoin reaching $100,000 or higher. Tom Fitzpatrick, a strategist at Citigroup Inc., made a splash this month when he said the crypto could potentially reach as high as $318,000.
The rise in forecasts has observers warning that the volatility that has been a hallmark of Bitcoin since its debut more than a decade ago is likely to return.
Edward Moya, a senior market analyst at Oanda, remembers attending a cryptocurrency conference in 2014. Back then, Bitcoin’s price was hovering around $600 after jumping the prior two months. And everyone, he says, was speculating about how high it might go. The event, and others like it, reminded him of the early Wild West days of the foreign-exchange markets.
“Cryptocurrencies have come a long way,” he said.
But Moya is skeptical this run can keep going -- he points to the last time crypto fans overestimated a Bitcoin rally. “Today’s outlandish calls seem primarily based on momentum mania,” he said. “I doubt institutional traders will allow Bitcoin to only go in one direction.”
--With assistance from Vildana Hajric.
This article was provided by Bloomberg News.