Michael Novogratz Likens Beyond Meat’s Surge to the Bitcoin Bubble

Billionaire hedge fund manager Michael Novogratz recently co-hosted CNBC’s morning slot Squawk Box. During his time on the show, he speculated on the Bitcoin price, stating that he doubts Bitcoin would dip below $5,000 again. He also spoke out on alternatives to popular modalities such as animal-free meat and virtual currency, saying prices are unnecessarily hyped up.

Bitcoin Pricing Predictions

When asked if Bitcoin will ever go back to $5,000, Novogratz said:

“I don’t think so. I think if it goes below $8,500 I’ll get nervous. If it goes below $6,000 I’ll get real nervous.”

Last year, Novogratz speculated that Bitcoin could “easily” reach $40,000 by the end of 2018.

The expert also talked about Beyond Meat, a Los Angeles company producing plant-based meat substitute products. He likened Beyond Meat to the cryptocurrency crash of 2017.

“Beyond Meat reminds me a little bit of crypto in 2017. You get great bubbles on big ideas. This is a great bubble.”

He noted that both Bitcoin and the company stock are trading at a “ludicrous price, but everyone gets sucked in.”

The CEO feels that big ideas such as Beyond Meat and Bitcoin are good at capturing people’s attention but are prone to becoming drastically overbought.

Novogratz and the Crypto Wild West

Novogratz has a love-hate relationship with cryptocurrency. The Galaxy Investment Partners CEO is a firm favorite with mainstream media writing on the subject.

Gradually exchanging a traditional finance career with Fortress Investment Group for the cryptocurrency industry, Novogratz entered the space in 2013. Capitalizing on his trading background, the manager started investing in digital currencies that same year. His first investment foray, buying $500,000 worth of Ethereum, made him $250 million in profit. It was the single biggest return on investment on a once-off trade he’d made in his entire trading career and the overall experience left him hooked.

Come 2015, Novogratz was all out on working in traditional finance and all-in on cryptocurrency. (According to reports, he was forced out of a partnership at Fortressdue to failed currency bets.)

He started Galaxy Digital in early 2018. The cryptocurrency-focused merchant bank, working exclusively within the digital assets and blockchain technology space, offers investing support, portfolio management, and other diversified industry offerings. The company went public in Canada later that year during an IPO. This move happened in the midst of the so-called Crypto Winter. By November 2018, Galaxy Digital had lost $136 million.

Buying Low, Badmouthing It Lower?

By his own account, more than 20% of Novogratz’ net worth is vested in cryptocurrencies, specifically in Bitcoin and Ethereum. Before the onset of Crypto Winter, he divulged that it made him sick to think how much he would’ve made had he not sold his Ethereum at $15.

The man is an investor type who shows little support for the vision upon which cryptocurrency was built. Instead, he appears convinced that ultimate failure is almost inevitable, ignoring proof that the asset is more than just a bubble. In the meantime, he’s intent on making as much money out of the boom as possible.

Regularly quoted in anti-cryptocurrency media outlets, Novogratz’ statements are twofold. Either they’re arguably over-hyped, or they’re demonstrative of his skeptical audience’s sentiment. Back in 2017, he said that Bitcoin would be “the largest bubble of our lifetimes.” He told Bloomberg:

“Remember, bubbles happen around things that fundamentally change the way we live. The railroad bubble. Railroads really fundamentally changed the way we lived. The internet bubble changed the way we live. When I look forward five, 10 years, the possibilities really get your animal spirits going.”

What are your thoughts on Novogratz’ price prediction and Beyond Meat / Bitcoin comparison? Does it hold water for you? Let us know in the comments below.

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