Novogratz: Bitcoin price will reach beyond $40,000 when investment banks move into crypto

Mike Novogratz, the legendary investor and founder of Galaxy Digital, believes Bitcoin will see its price "Increase significantly" in the next couple of years.

In an interview with Bloomberg Technology, Novogratz said that investment banks will be the next big players to enter the space and push BTC's price beyond $40,000.

Things got carried away in the past few weeks in the crypto market, but there's no doubt that Bitcoin will see its price grow significantly in the near future.

With some of the biggest companies in the world, such as Facebook, Uber, and Visa now participating in crypto, "Things got carried away" and there was "Too much energy in the market," Novogratz said.

Another parabolic rise probably won't happen until mid to end of the fourth quarter, Novogratz explained.

Speaking on Facebook's Libra, Novogratz said that the project "Completely legitimizes the whole idea of crypto." Libra's low volatility will make it a perfect tool to be used for payments and it won't compete with Bitcoin.

Novogratz believes investment banks will be the next big players to enter the market.

Widespread use will make crypto a part of the financial infrastructure of the world, which will make it impossible to ignore for banks.

Novogratz doesn't believe the industry needs more of it-he believes it needs smarter regulation.

Despite growing attention from central banks and financial companies, Novogratz expects no big changes made by the SEC, at least until a new head is appointed.