Bullish Bitcoin (BTC) Mike Novogratz Issues A Warning To Cryptocurrency Traders
Mike Novogratz, CEO of Galaxy Digital and a Bitcoin (BTC) bull, is warning crypto traders that altcoins might yet face significant devaluations.
Even while cryptocurrencies are already down significantly from their all-time highs, Mike Novogratz warns his 463,600 Twitter followers that they are still in risk of losing more than half of their value.
“Alts are down over 80% from the highs. In 2017, it was over 95%.
That is down another 70%,
My point is picking bottoms is dangerous and if you do, scale in slowly.”
Mike Novogratz also gives a gloomy outlook for the whole financial market, suggesting that crypto assets are likely headed to lower prices.
“One issue with risk modeling is that all the examples of stress in the past three decades which lead to bottoms happen in an environment of Fed easing. We are still early in tightening cycle. Means confidence in models and even ‘intuition’ has to be lower.”
Although Mike Novogratz says the macro backdrop looks bearish
He remains optimistic that the crypto markets will eventually recover.
“Crypto is not going away. The amount of human capital moving into the space isn’t slowing down. The focus on building decentralized infrastructure that allows value and ownership to flow as freely as information on the internet, isn’t slowing down. The GDP of the metaverse is heading one way. Our community is resilient, has a shared belief in a new way of doing things, and the assurance that this is the very early innings.”
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