Bitcoin heading over $10,000 in six to 10 months, former Fortress hedge fund manager says!

• Bitcoin has surged this year, up to $4874 on Tuesday, and Michael Novogratz sees it heading over $10,000.
• Novogratz is starting a $500 million fund to invest in cryptocurrencies, initial coin offerings and related companies.

 Although he says digital currencies like bitcoin show signs of  forming a bubble, former hedge fund manager Michael Novogratz is going  all-in. The former Fortress Investment  Group manager says he's been investing in bitcoin and its underlying  blockchain technology for a while and sees bitcoin's price rising to  over $10,000 in the next six to 10 months, largely because of heavy  investor interest.  Bitcoin was up 2.1 percent on Tuesday, to $4874.15  as of 5 p.m. ET, according to CoinDesk, and has surged in value this  year. "I can  hear the herd coming," he said during an appearance after market hours Tuesday on CNBC's "Fast Money." He likened bitcoin to digital gold.  

Novogratz is starting a $500 million  fund to invest in cryptocurrencies, initial coin offerings and related  companies. He put $150 million of his own money into Galaxy Digital  Assets Fund and plans to raise the rest from outside sources by January,  mainly from wealthy individuals and families and fellow hedge fund  managers. He told Bloomberg Television  last month that digital currency like bitcoin is "going to the be the  largest bubble of our lifetimes." JPMorgan Chase CEO Jamie Dimon last  month called bitcoin a "fraud" and said he would fire anyone at his bank for trading it. But whether bitcoin lasts or  eventually gets replaced by the next new thing, the underlying  blockchain technology is probably here to stay, he said. "Blockchain  will change the way we live," he said. "This is not going away."