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January 21, 2022
Analysis

Galaxy Digital CEO Mike Novogratz Says Bitcoin Has Hit The Bottom

Bitcoin has been on a downward streak for the reason that final quarter of 2021, and this has spilled into the brand new 12 months. As January goes into full bloom, it has include discouraging actions for buyers as over $500 billion has been wiped off the market. This has despatched bitcoin’s price all the way down to the dreaded $40,000 price vary.

One query that continues to be within the thoughts of buyers is, has the market seen the bitcoin backside? Billionaire Mike Novogratz makes an attempt to reply this as he places forwards his ideas on the difficulty and predicts the bitcoin backside.

Related Reading | TA: Bitcoin Key Indicators Suggest A Strengthening Case For More Downsides

Bitcoin Should Bottom Out Between $38,000 to $40,000

Galaxy Digital CEO Mike Novogratz has all the time been an energetic voice within the crypto area and has at numerous occasions given his ideas on the market. This time round, Novogratz sat down with CNBC’s Squawk Box, the place he predicted the place the underside of the present bitcoin downtrend can be.

The billionaire CEO positioned the ground of the present downtrend at $38,000 which he doesn’t see bitcoin going beneath. Currently, bitcoin’s lowest through the dips have been $40,680, from which the digital asset has since recovered. But if Novogratz’s predictions are something to go by, then the market may even see one other dip earlier than there’s a full-blown restoration development.

Bitcoin price chart from TradingView.com

BTC price tumbles all the way down to $41,475 | Source: BTCUSD on TradingView.com

The CEO provides his cause for this backside as institutional buyers making the most of the low costs to get into the digital asset. I” know huge establishments who’re going via their course of to place positions on. They’re going to see these as engaging ranges to purchase,”  Novogratz mentioned.

“On the charts, $38,000, $40,000 feels like where we should bottom,” he added.

Inflation Will Drive Growth

Continuing on, Novogratz shares extra relating to his stance on this predicted bitcoin backside. One of these has been inflation.

Those who’ve been following the markets know that rising inflation charges have led to rising issues amongst buyers who’ve begun to search for options to gold to function an inflation hedge. Bitcoin has naturally grow to be the choice for these buyers.

The Fed believes that inflation charges will start to come back down, however the CEO defined that if this doesn’t go as deliberate, then “all bets are off.”

Related Reading | Melania Trump Congratulates Bitcoin On thirteenth Anniversary Of Bitcoin Genesis Block

Digital Galaxy, on which Novogratz heads as CEO, has made a reputation for itself within the area as being an enormous bitcoin proponent. The firm at the moment holds over 12,000 bitcoins, making it one of many corporations with the most important bitcoin holdings on the planet.

Mike Novogratz himself additionally has a private stake in cryptocurrencies, revealing that he holds about 85% of his internet price in cryptocurrencies, which on the time translated to as much as $4.8 billion held by the billionaire in crypto.

Featured picture from Stock Hax, chart from TradingView.com

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