Michael Novogratz, the former macro manager who’s turned into one of the biggest champions of bitcoin, shelved plans to start a cryptocurrency hedge fund and predicted that the digital money may extend its plunge to $8,000.
“We didn’t like market conditions and we wanted to re-evaluate what we’re doing,” Novogratz said Friday in a phone interview. “I look pretty smart pressing the pause button right now.
Novogratz, 53, said he told potential investors last week that he changed his mind, two days before his Galaxy Digital Assets Fund was due to start on Dec. 15. Novogratz cited a growing number of hurdles, including the prospect of buying bitcoin or ether for clients, while simultaneously selling crypto investments in his personal account.
Bitcoin has slumped as much as 42 percent in the past four days, the biggest decline over such a span since 2013. On Friday it dropped to as low as $10,776, before rebounding to $13,268 at 2:27 p.m. in New York. It last traded below $10,000 on Dec. 1, when the U.S. Commodity Futures Trading Commission agreed to allow trading in bitcoin futures. Other cryptocurrencies including ethereum and litecoin also tumbled.
Novogratz said he’s been selling cryptocurrencies in his personal account as bitcoin passed $13,000, $16,000 and $17,000 and as ether topped $600, $700 and $800. Novogratz said he lost money today as prices plunged but has profited for the month so far.