Last month he said Bitcoin would break $10,000, now he says it will break $40,000 by the end of next year

In just three trading days, Bitcoin soared from less than $9,000 to over $9,700, a nearly 10-fold increase this year.

This has boosted bullish sentiment, and it seems that $10,000 is within reach. Former Fortress fund manager Michael Novogratz even predicted in a CNBC interview on Monday that Bitcoin is expected to hit the $40,000 mark by the end of next year, "which is easy."

On October 10, Michael Novogratz publicly predicted that Bitcoin would climb to $10,000. In other words, his expectations doubled several times in more than a month.

Michael Novogratz also said that the market value of Bitcoin is expected to increase by about 6 times to 2 trillion US dollars by the end of next year. According to data from the US CoinDesk trading platform, the total market value of Bitcoin has reached 304 billion US dollars.

Similar to Bitcoin, the price of Ethereum, also a digital currency, has also soared, hitting a new record of $493.4 on Monday, with a year-to-date increase of an astonishing 5,000%. Michael Novogratz believes that the price of Ethereum will triple.

"There is a large amount of capital entering the market, not just in the United States, but all over the world," he said.

U.S. media quoted statistics from Bespoke Investment Group LLC., saying that on Coinbase, one of the world's largest bitcoin trading platforms, the number of bitcoin trading accounts has almost tripled in the past year, with more than 100,000 new accounts added in just three days between Thanksgiving and Black Friday, and now as many as 13.1 million.

According to CNBC, demand from Asia is an important driving force behind the surge in Bitcoin prices. According to CryptoCompare data, Bitcoin traded in Japanese yen contributes 62% of the world's total trading volume. Bitcoin traded in US dollars accounts for 21% of the world's total trading volume, and the Korean won accounts for about 9%.

Although Michael Novogratz calls "Bitcoin the biggest bubble of our time," he believes that the madness is justified because it represents an advancement in technology that is expected to fundamentally change our lives.

Mike Novogratz is planning to launch a digital asset fund with an asset management scale of about US$500 million through his own fund Galaxy Investment Partners. He revealed on Monday that more than 20% or even 30% of his fund are digital virtual currency assets.

However, he does not recommend that retail investors invest too much of their assets in digital currencies, and the best allocation is between 1% and 3%. For wealthy people, he recommends that the allocation ratio be maintained between 5% and 10%. After all, Bitcoin, Ethereum, etc. are assets with very large fluctuations.

More importantly, many analysts believe that virtual assets such as Bitcoin are full of serious bubbles.

Wall Street News mentioned that Ken Griffin, founder and CEO of Citadel, said on Monday, "Bitcoin now has many elements of the tulip craze, which we can trace back to the Netherlands hundreds of years ago. Is this a scam? No. But these bubbles often end in tragedy. I am worried about how this bubble will end."