Mike Novogratz – a bitcoin bull, billionaire investor and former hedge fund manager – took some time to discuss the most recent bitcoin drop, saying that it was a “liquidation event.”
Novogratz: Bitcoin Will Undergo a Serious Correction
The currency – which was trading at $64,000 per unit just a month ago – had fallen into the mid-$40,000 range earlier in the week following news that Elon Musk was ending all bitcoin payments through Tesla and that he was potentially considering selling his BTC. While nothing has come of the latter, this sent serious waves throughout the crypto space, and the world’s largest and most powerful cryptocurrency by market cap lost approximately $20,000 from April’s high.
However, now the asset has dropped even further, with the price of bitcoin trading for $37,000 at press time. This is a marginal improvement over the $31,000 it initially fell to during the early morning hours of today’s press coverage, but it is still considerably lower than where traders would like it to be.
Novogratz commented that the bitcoin price is likely to stay this way for some time, and that things are going to remain unsteady for a while. In an interview with CNBC, he stated:
Humpty Dumpty never gets put back together in two days… when he cracks. It is going to take a while. The market will consolidate. It will find a bottom somewhere. I am hoping it is close to here.
Novogratz further commented that he saw bitcoin remaining between $36,000 and $38,000 for the next couple of months, saying:
The story has not gone anywhere. This crypto revolution has happened, but there are certainly setbacks for the wallets and for the investor base. People lost a lot of money, so they will dust themselves off.
Adding insult to injury is the latest report issued by JPMorgan, which states that many institutional players – which earlier this year, had a serious love affair with bitcoin and other forms of crypto – are now abandoning digital currencies in favor of gold-related investments. The precious metal has since skyrocketed to a price of approximately $1,900 per ounce, and gold is looking more attractive each day as bitcoin continues to fall into oblivion.
Things Will Eventually Repair Themselves
Despite this, Novogratz is staying positive, and believes this is just the result of bitcoin being hit with multiple blows at once. He is also confident that more people will invest in BTC in the long run, saying:
I see a movement. I was out with two bank CEOs in the last month, and both were fascinated with decentralized finance. I just see an inexorable move from financial institutions and tech companies into the crypto space… A lot more people own crypto. Crypto has seeped into pockets all over our society and you had a confluence of events… where you started breaking down the positivity.