Bitcoin Nears $10,000

Bitcoin

Bitcoin has recently been on a climb, an 800% climb to be exact since the beginning of the year, but well known investor Jack Bogle doesn’t think you

should start throwing your life savings into the crypto market just yet.

“Avoid bitcoin like the plague. Did I make myself clear?” Bogle, founder of Vanguard Group Inc., said in response to a question asked the council of Foreign Relations event in new York Tuesday. Currently,

Bitcoin is hovering just under $10,000 this week.

“Bitcoin has no underlying rate of return,” said Bogle, 88, who started the first index fund in 1976. “You know bonds have an interest coupon, stocks have earnings and dividends, gold has nothing. There is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it.”

It’s “crazy” to invest in the digital asset, he added. “Bitcoin may well go to $20,000 but that won’t prove I’m wrong. When it gets back to $100, we’ll talk.”

That being said, one of the largest Bitcoin investors from Wall Street said the cyptocurrency market is in a bubble, but that didn’t stop him from starting a 500 million fund.

Novogratz, who said he starting investing in Bitcoin when it was at $90, is building the cryptocurrency fund because he believes the financial institutions will eventually adapt to crypto technology.

“Bubbles start around ideas that are often right,” he said. “I don’t think many of these are currencies, even bitcoin,” he said at the Coindesk-sponsored conference. “Bitcoin will win battle for store of value.”

Novogratz’s Galaxy Digital Assets Fund would be the biggest of its kind and signal a growing acceptance of cryptocurrencies as legitimate investments. For Novogratz, the fund marks a comeback to professional money management after humbling losses at Fortress Investment Group LLC and almost two years of self-imposed exile from Wall Street.

Read more: Bitcoin’s Most-Famous Lovers and Haters Speak Out on the Rally

Thomas Lee, the head of research at Fundstrat Global Advisors LLC, said the peak in Bitcoin is going to come from the trade and speculation side. Maybe that happens when pension funds start allocating to crypto, he said at the conference.

Lee doubled his bitcoin price prediction last week to $11,500 by July of 2018, which is a 40% increase from the current price at that time. He called bitcoin the next big wave of innovation during the conference.

Bitcoin’s attack on $10,000 has showed bears the evidence they need to confirm it’s a possible bubble. There are ways to best on a market crash, but they’re even more risky than trading with crypto on the way up.

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