Mike Novogratz Sees Bitcoin (BTC) Dropping to $55K – Crypto News – Crypto News
Connect with us
Mike Novogratz Sees Bitcoin (BTC) Dropping to $55K Mike Novogratz Sees Bitcoin (BTC) Dropping to $55K

Cryptocurrency

Mike Novogratz Sees Bitcoin (BTC) Dropping to $55K – Crypto News

Published

1 year ago

on

Cover image via www.flickr.com

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Contents

In a recent Bloomberg TV interview, Michael Novogratz, the founder and CEO of Galaxy Digital, forecasted that the flagship cryptocurrency might experience a temporary dip before it surges to new heights. 

Novogratz, a seasoned investor in the cryptocurrency space, believes that Bitcoin might retract to the mid-$50,000 range amid a broader consolidation phase after its impressive rally that saw a more than 40% increase this year. 

As reported by U.Today, the rally was largely fueled by the successful launch of Bitcoin exchange-traded funds (ETFs). 

The digital currency was trading at around $60,700 at the time of the interview, riding the wave of its recent gains.

The consolidation phase

Novogratz described the current market momentum as a “price discovery” phase that was spurred by the introduction of Bitcoin ETFs, which have attracted a new wave of investors to the cryptocurrency sector. This influx of buyers has significantly contributed to Bitcoin’s price surge.

However, Novogratz cautioned that the market’s current leverage levels, particularly among millennials and Gen Z investors who are “chasing highs,” indicate that a correction could be imminent. 

“You’ve got a lot of millennials and Gen Z YOLOing it, and they all will get some of that money and a lot of ’em will get wiped out,” he explained.

He pointed out that some investors might profit from the situation, but many could face significant losses if the market were to experience a downturn.

Leverage and marked dynamics

Further delving into market dynamics, Novogratz pointed out the difference in leverage between the bull run of 2021 and the current situation. 

He observed that big institutional players are now less leveraged while retail traders are over-leveraged, especially through offshore crypto trading platforms that offer substantial leverage. “The big institutional players have less leverage right now… but retail still loves leverage,” he said. 

This scenario, according to Novogratz, sets the stage for potential “washouts,” where the market could see a significant retraction before stabilizing and resuming its upward trajectory.

The crypto mogul warned of the volatility that such leverage can introduce to the market, stating, “You’re going to see this boom-bust in the short run with an overall really positive trend as people just keep deciding to allocate some of their portfolios to Bitcoin.”

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending