By Kate Duguid and Jennifer Ablan
NEW YORK (Reuters) - Michael Novogratz, former macro hedge fund manager and founder of cryptocurrency asset management firm Galaxy Digital Capital Management, on Thursday said that the bottom in cryptocurrency prices has been reached and bitcoin is due to bounce back.
Bitcoin was last valued at $6,419.03, less than a third of its peak near $20,000 in December 2017.
Bitcoin experienced a "classic speculative global mania" in 2016-2017, but is now on the upswing because the market has hit "seller fatigue," Novogratz said at Yahoo Finance's second annual "All Markets Summit."
Novogratz, a former hedge fund manager at Fortress Investment Group and Goldman Sachs Group partner, has been one of the most outspoken advocates of cryptocurrencies on Wall Street.
“Bitcoin has held $6,000. Yes, it is off its highs, but it has established itself as a store of value,” Novogratz said.
There is a lot of institutional money ready to spend on cryptocurrencies, particularly at venture funds, said Novogratz of a move that would boost prices.
Banks will experience "FOMO," or a fear of missing out, on the crypto trend, Novogratz said. "I think institutions are moving towards investing. It’s shocking how much has happened.”
Asked about the meteoric rise of cannabis stocks, such as Tilray Inc, Novogratz said the prices right now feel like where bitcoin was last year.
(Reporting by Kate Duguid and Jennifer Ablan; Editing by Phil Berlowitz and Bill Berkrot)