Bitcoin has fallen into the dung heap. The currency – which last month hit a new all-time high of roughly $64,000 – is now trading for about $20,000 less and is trapped in the $43,000 range. It also looks like things are going to be unsteady for the next couple of weeks according to billionaire investor and former hedge fund manager Mike Novogratz.
Mike Novogratz: Expect Things to Be Down for the Next Month
Novogratz is arguably one of the world’s biggest bitcoin advocates, but even he has acknowledged that the world’s number one digital currency by market cap is not in a great place right now. He believes that the asset is going to consolidate until the end of June, and that in the end, it may wind up finding a comfy spot between $40K and $50K.
In an interview, Novogratz comments:
I think we are going to consolidate for a while, four to six weeks.
While bitcoin ultimately hit a rough snag back in late April, things really took a nasty turn last week when Elon Musk – the South African entrepreneur behind billion-dollar companies such as SpaceX and Tesla – decided that his electric car enterprise was not going to be accepting bitcoin payments after all. Many traders and crypto advocates took the news hard, deciding that this would ultimately be the big push bitcoin needed into legitimate and mainstream territory and that Musk was dashing their hopes on the nearby rocks.
Musk’s primary concern had to do with bitcoin mining, which he says is wreaking havoc on the planet. Ultimately, he hinted that in accepting BTC payments in the future, the demand and necessity for BTC would become much bigger than it already is, which would require more mining and thus lead to potentially irreversible environmental damage.
Discussing Musk’s words, Novogratz mentioned:
I took his mining comments at face value. I do not think that’s bitcoin specific; that is everything specific. The gold market, YouTube – all of it uses electricity, and Elon has businesses in clean energy.
This has been a big argument against bitcoin up to this point. Many are concerned that the currency is utilizing too much of the world’s energy and thus there are several problems stemming from the crypto industry, which is now examining its environmental, social, and corporate governance (ESG) to see how to remedy this in the future.
We Need to Solve the “Electrical” Problems
Novogratz says that this is something that is likely to be solved sooner rather than later, stating:
Like all industries, ESG is important, and the crypto industry including Galaxy is going to address it… Let us not miss the big picture for the small picture. We are going through a once-in-a-generational shift in this blockchain evolution, where the financial infrastructure is starting to be rebuilt. That process is picking up momentum.