Bitcoin saw its highest price before December 2017 when the cryptocurrency hit just under $20,000. Cryptocurrency expert Michael Novogratz said institutional adoption of bitcoin will likely result in the cryptocurrency surpassing its all-time highs.
Mr Novogratz, Galaxy Investment Partners founder, told Bloomberg News: “All of a sudden the question around institutionalisation has been answered. You know, the time to build out the systems.”
The price of BTC increased after Facebook announced the launch of its own cryptocurrency called Libra.
Mr Novogratz explained that with the introduction of Facebook’s Libra “things got a little bit carried away”, which resulted in a consolidation – a term used to refer to market hesitance in which a stock’s price remains in a defined patter of trading.
He added: “So it kind of went up to $14,000 and back down to $10,000. I think we are going to see the market consolidate between $10,000 and $14,000 for a while before it takes off the next leg higher.
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“And the next leg higher probably comes as the new institutions start to come in and then you’ll see bitcoin go towards the old highs of $20,000 or higher.
“What you are going to see over the next three months, six months, eight months, 12 months, 18 months, is more and more ways you can but this stuff.
“I would bet you within two years MasterCard and Visa accept bitcoin with their credit cards.”
The cryptocurrency expert said he believes bitcoin will go “significantly high” but only if “everyone buys just a little bit of bitcoin”.
Head of digital assets at Susquehanna Bart Smith said bitcoin being at its highest level in 15 months is not due to Facebook’s Libra but instead due to increased interest in the cryptocurrency.
Mr Smith has previously been critical of the cryptocurrency and said it is “certainly speculative”.
Libra will be managed by a large group of companies including Spotify, Uber and Vodafone.
The wallet, which will be available in WhatsApp and Facebook Messenger, will eventually be able to pay bills, buy goods or use public transport.