Reading Time: 4 minutes

Today’s News is Brought to You By

To receive daily news, research, analysis, education, and more directly to your inbox everyday for FREE, subscribe here.


Billionaire Investor Mike Novogratz Calls $10,000 BTC This Year


Novogratz is an esteemed crypto investor

Mike Novogratz is a former hedge fund manager at Fortress Investment Group and entered into the crypto industry by earlier this year raising $250 million to develop a “cryptocurrency merchant bank” in Canada.

In May, Novogratz launched a cryptocurrency index with Bloomberg, called the Bloomberg Galaxy Crypto Index.

A couple of days ago, Novogratz called the state of the current market a ‘classic bottom’ and has high expectations for where the market can go in the future.

‘Impossible’ for Bitcoin not to rebound

Novogratz recently appeared on CNBC to continue his public admiration for cryptocurrencies. Over the past year or so, Novogratz has made many public appearances to give his opinion on crypto and blockchain.

During his recent CNBC appearance, Novogratz put out the bold statement that it is ‘impossible’ for Bitcoin not to rebound from its current level. He specifically set a target range of $8,800 to $10,000 and a timeframe of the end of the year. This would represent a 30% upside for BTC in only about a three-month duration.

Institutions will be victim to FOMO

Novogratz believes that the main driver of the next bull market will be the institutional investment. He believes that institutional investors will fall victim to FOMO as many retail investors did in late 2017, driving the price of BTC to $20,000. He predicts that once institutional FOMO kicks in, institutions will launch the crypto market all the way to $20 trillion.

He explained his bold $20 trillion prediction:

““It won’t go there ($20 trillion) right away. What is going to happen is, one of these intrepid pension funds, somebody who is a market leader, is going to say, you know what? We’ve got custody, Goldman Sachs is involved, Bloomberg has an index I can track my performance against, and they’re going to buy. And all of the sudden, the second guy buys. The same FOMO that you saw in retail [will be demonstrated by institutional investors].”


The Bitcoin Bug that Developers Kept Secret

There could’ve been more than 21 million BTC

This week a bug in Bitcoin’s code was revealed that could’ve been catastrophic.

Bitcoin derives its value from scarcity. This bug could’ve spoiled Bitcoin’s biggest selling point. If the bug was exploited, an attacker would have been able to create new Bitcoin above the 21 million cap.

An attack of this nature could have been a fatal blow to the $115 billion cryptocurrency.


When this bug was revealed to Bitcoin developers by an anonymous user, the developers were forced to keep it a secret until they could create a patch.

Bitcoin Core developers wrote in a Common Vulnerabilities and Exposures report:

“In order to encourage rapid upgrades, the decision was made to immediately patch and disclose the less serious denial of service vulnerability, concurrently with reaching out to miners, businesses and other affected systems, while delaying publication of the full issue to give time for systems to upgrade.”Could the bug already have been exploited?

When news of this bug’s existence was unveiled, Bitcoin users began to fear if the bug already could have been exploited.

Bitcoin Core contributor Pieter Wuille explained that we would have been able to detect if illegitimate Bitcoins were ever created.

Even if the bug were to be exploited, developers say that the damage could be rolled back. In 2010, what was called the “value overflow incident” occurred to Bitcoin. 187 million Bitcoins were created out of nowhere, but were ultimately destroyed.


Tether Has No Impact on Bitcoin Price, Research Finds

Going against the tide

Earlier this year, researchers at the University of Texas reported findings that argued Tether manipulated the price of Bitcoin and caused it to hit astronomical price levels in 2017.

That study confirmed a widely held view in the crypto community that Tether issuances provide support for Bitcoin during market downturns.

Now, however, Wang Chun Wei from the University of Queensland Business School is claiming that while Tether issuances are correlated with increases in Bitcoin prices, there is no empirical data that supports a direct relationship between the two.

The report in a nutshell

Though the findings don’t suggest Bitcoin price increases are caused by Tether issuances, it did find that Tether issuances have a positive correlation with increased trading volume.

Wang Chun Wei points out that even if the spike in trading volume was caused by investors using new USDT tokens to purchase Bitcoin, the magnitude would not be large enough to cause price manipulation.

In addition, the report is quick to explain that when Bitcoin’s price falls, many investors increase stablecoin holdings and this event could be causing new Tether issuances due to increased demand rather than an attempt by Tether to prop up Bitcoin’s price.