Former Fortress Executive Says Crypto ‘Largest Bubble of Our Lifetimes’

A former executive from Fortress Investment Group has described the cryptocurrency markets as the “largest bubble of our lifetime,” amid reports he is setting up a new fund to specifically target cryptocurrency investments.

Billionaire hedge fund manager Mike Novogratz is reported to have made the comments by a source quoted by Bloomberg News, suggesting that he is seeking to launch a new $500-million fund to take advantage of growth opportunities in the market.

According to reports, Novogratz is contributing $150 million of his own money, as well as seeking to raise a further $350 million from external sources by the end of this year.

While the plans have not been confirmed or denied by Novogratz personally, they would represent his most significant move in the cryptocurrency space thus far.

It was reported earlier this year that Novogratz had invested 10 percent of his net worth in bitcoin and ethereum specifically, two currencies on which he has been both extremely vocal and bullish. According to media comments since, Novogratz has suggested his personal stake is now even bigger, reflecting the extent to which he projects price growth in these markets.

At the time, Novogratz said that he had identified familiar patterns in cryptocurrency markets, which had inspired him to take positions in bitcoin.

“In a lot of ways, this is a market like any other market. You see the psychology of fear and greed in the charts the same way you’d see it in charts of the Indonesian rupiah or dollar-yen or treasuries. They’re exaggerated because of less liquidity and because you can’t get short.”

In his latest comments describing cryptocurrency as a “bubble,” Novogratz was unequivocal about the opportunities for making money, as prices continue to rise in underlying cryptocurrency markets.

“This is going to be the largest bubble of our lifetimes. Prices are going to get way ahead of where they should be. You can make a whole lot of money on the way up, and we plan on it.”

Interestingly, Novogratz has also spoken to the dangers of ICOs, and predicted many of those that have recently launched will lose all of their value over time, echoing concerns about fraud in the sector.