Mike Novogratz on Cryptocurrency Prices: “Of Course, We Could Go Lower”

Mike Novogratz, the CEO of Galaxy Digital, stated that cryptocurrency values may yet decline during a recent visit on CNBC. “We’re going sideways… Could you go lower? Certainly, we could “The crypto tycoon stated.

His “instinct” tells him that until the Federal Reserve changes its hawkish monetary strategy, it will be “choppy sideways” for some time.

Mike Novogratz asserts that “tons and loads” of excessive leverage is to blame for the industry’s current severe correction. Centralized bitcoin businesses with a lot of power included Celsius, BlockFi, and Three Arrows Capital, according to Mike Novogratz.

The three aforementioned businesses are currently among the worst hit by the ongoing market meltdown, which has brought the entire sector to its breaking point.

According to Mike Novogratz, the process of deleveraging is still not totally complete

We seem to be 90% done with the deleveraging, he continued.

Of course, the issue is that there isn’t an optimistic narrative for cryptocurrencies that may raise prices by drawing in more investors. Since the “inflation” hedge argument is no longer valid, Bitcoin needs to develop a new, compelling narrative to entice investors.

Due to its strong association with the tech-heavy Nasdaq 100, Novogratz correctly forecasted that Bitcoin will underperform in the first quarter of 2021 in late 2021. He stated that the biggest cryptocurrency was “extremely vulnerable” in January.

Earlier today, Bitcoin temporarily soared above the $21,000 mark, but bulls are still wary of a potential pullback.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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