Mike Novogratz, CEO of Galaxy Digital, expects bitcoin’s price to drop below $38K-$40K. “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,” he said.
Mike Novogratz is a guest blogger on Future Outlook of Crypto Market
CNBC interviewed Mike Novogratz last week, Galaxy Digital’s CEO, about his outlook on the crypto market. When he was asked about falling cryptocurrency prices, notably bitcoin, he answered.
“Part of the bitcoin story was the debasement of fiat currency and as the Fed looks to get more hawkish, some of that comes off,” he explained.
“Crypto had a monster year last year. It’s hard to think you’re going to grow to the sky nonstop. This is a pullback,” he stressed, adding:
There is a lot of demand from institutions. I’m not nervous in the medium-term.
Nonetheless, Novogratz cautioned, “We are going to have a lot of volatility in the next few weeks.”
Novogratz was also asked if he thought there was a floor at $38,000 for bitcoin after he said, “you will find a lot of support for bitcoin” around $38K to $42K. Galaxy Digital’s executive responded:
Large institutions have been putting their positions on, and I am familiar with them. They’re going to see those as attractive levels to buy.
“On the charts, $38,000, $40,000 feel like where we should bottom,” he emphasized. On Friday, Novogratz tweeted, “We entered the buy zone…”
Bitcoin’s price has fallen by more than 12% in the past week. BTC’s current price is $41,955.39.
This was not the first time Novogratz said institutional investors see bitcoin’s declining price as an opportunity to buy. In June, when bitcoin’s price fell below $30K, he made the same statement.
He said in September that the cryptocurrency market was still healthy despite falling price of cryptos. “The ecosystem is so much more mature. The amount of players that are moving in are so much more mature,” he explained. “Every single bank is working on their own crypto project, how they can get bitcoin to their wealthy clients.”
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