The cryptocurrencies market started the year of 2018 earlier than other assets and showed mixed trading. In first days of trading, bitcoin tumbled by 6%. Interestingly, this is the first time since 2015 that the cryptocurrency has started a new year with a fall.
Meanwhile, ethereum gained 11%.
During the first day of trading in 2017, bitcoin went up by 3.6% to $1,000, sparking cryptomania among investors. Over the year, bitcoin soared by 1,500%.
Michael Novogratz, the former macro manager who turned into one of the biggest champions of bitcoin, shelved plans to start a cryptocurrency hedge fund and predicted that the digital currency may extend its decline to $8,000, Bloomberg reported.
“We did not like market conditions and we wanted to re-evaluate what we are doing,” Novogratz said. “I look pretty smart pressing the pause button right now.”
Novogratz planned to launch his Galaxy Digital Assets Fund on December 15 but changed his mind, citing a growing number of hurdles, including the prospect of buying bitcoin or ether for clients, while simultaneously selling crypto investments in his personal account.
Despite the fact that Novogratz called cryptocurrencies the biggest bubble of our lifetime, he does not give up on them and still believes they will be a disruptive force in financial markets.
Last month he said that bitcoin could hit $50,000 by the end of next year. His previous estimate was $40,000.
