Since the end of the quarter 2021, Bitcoin has experienced a decline in value. This trend has continued into 2019. Investors are seeing a decline in bitcoin’s value as more than $500 billion is wiped from the market. This has sent bitcoin’s price down to the dreaded $40,000 price range.
Investors are still asking the same question: Has the market reached its bitcoin bottom? Mike Novogratz, a billionaire and investor in bitcoin, attempts to address this question by presenting his views on the matter and predicting the bottom of the market.
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Bitcoin Prices Should Be Between $38,000 and $40,000.
Galaxy Digital CEO Mike Novogratz was an active participant in the cryptocurrency space. He has also given his opinions on various markets. Novogratz was available to speak with Novogratz. CNBC’s Squawk Box, where he predicted where the bottom of the current bitcoin downtrend will be.
According to the billionaire CEO, the floor of current downtrend is $38,000. He doesn’t see bitcoin falling under. Currently, bitcoin’s lowest during the dips have been $40,680, from which the digital asset has since recovered. But if Novogratz’s predictions are anything to go by, then the market may see another dip before there is a full-blown recovery trend.
BTC prices fall to $41,475| Source: BTCUSD on TradingView.com
According to the CEO, the bottom is due to institutional investors profiting from the low price of digital assets. I” know big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy,” Novogratz said.
“On the charts, $38,000, $40,000 feels like where we should bottom,” he added.
Inflation Will Drive Growth
Novogratz then shares his views on the bitcoin bottom prediction. The inflation is one.
Investors are becoming more concerned about rising inflation. As a result, they have started to search for other options to gold as an inflation hedge. Bitcoin is now an attractive option.
The Fed believes that inflation rates will begin to come down, but the CEO explained that if this does not go as planned, then “all bets are off.”
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Digital Galaxy (where Novogratz is the CEO) has made a strong name in this space for being an avid bitcoin supporter. It currently has over 12,000 bitcoins and is one of the most prominent bitcoin-holding companies in the world.
Mike Novogratz has also a stake in cryptocurrency. This means that around 85% of Mike’s net worth can be found in cryptocurrencies.
Stock Hax featured image, Chart from TradingView.com