Cryptocurrency guru and former hedge fund manager Michael Novogratz said bitcoin and other cryptocurrencies have bottomed and insisted a bounce back is due.
A bottom indicates the lowest price reached by the cryptocurrency in a specific timespan and could be in the early stages of an upward trend.
The former macro hedge fund manager and founder of cryptocurrency asset management firm Galaxy Digital Capital Management told Yahoo Finance’s second annual All Markets Summit in New York there is a “classic bottom” seen in bitcoin price, as he cited Galaxy Digital’s cryptocurrency index.
Mr Novogratz said: “Bitcoin has held $6,000. Yes, it is off its highs, but it has established itself as a store of value.
He added: “I think institutions are moving towards investing. It’s shocking how much has happened.”
Mr Novogratz was asked by Fox News when investors will be coming for bitcoin. He said: “It’s happening right now. If there are four big kind of buckets I think about.”
He added: “Goldman Sachs has announced they are on their way with custody. They haven’t given us a date yet but I am hearing it is close.
“Lots of custody solutions are coming. So I bet by year end institutions will have not just one but two or three good custody solutions that they have heard of.
“Two is indexes, we came up with the Bloomberg Galaxy crypto index. There is a bunch of different indexes that people can benchmark.”
Mr Novogratz said the third point would be institutional players, adding: “I would bet by the end of the year that framework is there and we are already seeing institutions like endowments and pension funds make bets.”
He revealed: “You’re starting to see the first people saying ‘hey the is a store value’.”
Bitcoin price was at $6,695.75 at 09:45 (BST) on Friday, according to CoinDesk. It saw its highest value before Christmas when it reached a monumental price of just under $20,000.
Bitcoin and other cryptocurrencies have faced criticism by banks and finance experts, with billionaire Bill Gates telling CNBC he would bet against the bitcoin and short it if he could.
The Microsoft co-founder said: “As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment.”
He added: “I agree I would short it if there was an easy way to do it.”
Former PayPal CEO Bill Harris also claimed bitcoin is the “greatest scam in history”.
Writing in Recode, Mr Harris said: “Okay, I’ll say it: Bitcoin is a scam. In my opinion, it’s a colossal pump-and-dump scheme, the likes of which the world has never seen.
“In a pump-and-dump game, promoters “pump” up the price of a security creating a speculative frenzy, then “dump” some of their holdings at artificially high prices. And some cryptocurrencies are pure frauds.”