Galaxy Digital CEO Mike Novogratz expects the price of bitcoin to bottom at around $38K-$40K. “I know big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy,” he said.
Mike Novogratz on Future Outlook of Crypto Market
The CEO of Galaxy Digital, Mike Novogratz, talked about the outlook for the cryptocurrency market in an interview with CNBC last week. He was asked about the falling prices of cryptocurrencies, particularly bitcoin.
“Part of the bitcoin story was the debasement of fiat currency and as the Fed looks to get more hawkish, some of that comes off,” he explained.
“Crypto had a monster year last year. It’s hard to think you’re going to grow to the sky nonstop. This is a pullback,” he stressed, adding:
They see a tremendous amount of institutional demand on the sidelines. I’m not nervous in the medium-term.
Nonetheless, Novogratz cautioned, “they are going to have a lot of volatility in the next few weeks.”
Novogratz was also asked if he thought there was a floor at $38,000 for bitcoin after he said, “you will find a lot of support for bitcoin” around $38K to $42K. The Galaxy Digital executive replied:
Big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy.
“On the charts, $38,000, $40,000 feel like where they should bottom,” he emphasized. On Friday, Novogratz tweeted, “they entered the buy zone…”
The price of bitcoin fell more than 12% over the past week. At the time of writing, the price of BTC is $41,955.39.
This was not the first time Novogratz said institutional investors see bitcoin’s declining price as an opportunity to buy. He made a similar statement in June when the price of BTC fell below the $30K level.
In September, he said that the crypto market was in good shape despite the falling prices of cryptocurrencies. “The ecosystem is so much more mature. The amount of players that are moving in are so much more mature,” he explained. “Every single bank is working on their own crypto project, how they can get bitcoin to their wealthy clients.”