Novogratz predicted the bitcoin price could drop back to around $80,000 per bitcoin but said he didn't expect it to fall under this level— where it was trading ahead of Trump's presidential election victory that signaled a "paradigm shift" for crypto regulation.

Bitcoin came within a whisker of closing above $100,000 for the first time on Thursday as the election of Republican Donald Trump as U.S. president spurred expectations that his administration will create a friendly regulatory environment for cryptocurrencies.

Because the supply of bitcoin is finite – there will only ever be 21 million mined – it is often considered a hedge against runaway inflation. More available money funnelling into the scarce asset will necessarily drive up bitcoin’s price.