Crypto billionaire and early Bitcoin investor Mike Novogratz who predicted $38,000 Bitcoin low, talks market outlook
Mike Novogratz on the Crypto Market Outlook
After the recent sell-off, crypto billionaire and early Bitcoin investor Mike Novogratz discuss the crypto market outlook.
As Bitcoin and altcoins pared their gains from the previous day, the cryptocurrency market bowed to broad selling pressure.
Bitcoin fell to a low of $37,704 before recovering slightly, while Ethereum fell to $2,731. The bulk of crypto assets, particularly those in the top 100, are currently trading in the red, with the majority suffering severe losses.
2) crypto will have a hard time rallying until stocks find a base. That said, crypto already had a decent sell off and is running into some buying support.
Finally, the best traders get good at gallows humor 😂
— Mike Novogratz (@novogratz) January 20, 2022As 2022 approaches, the Galaxy Digital CEO previously predicted that Bitcoin would hit bottom lows of $38,000 as institutional investors prepare to buy amid a sell-off. In an interview, the crypto billionaire stated that he believes the $38,000 level will be an attractive place to buy for big institutions.
However, Novogratz believes that crypto has already experienced a significant sell-off and is now encountering some buying support. “Crypto will have a hard time rallying until stocks find a base,” he says, citing one condition on which this could happen: if stocks recover.
Noting a breakdown in bonds and tens, the crypto billionaire predicted the Nasdaq and crypto would face downside pressure days before rates rose.
IntotheBlock, an on-chain analytics firm, predicted that the Bitcoin price would be under pressure, stating that “BTC hangs by a thread,” and that the most important support level for Bitcoin is between $38,900 and $40,200. According to IntotheBlock, such a critical demand barrier must hold in order for BTC to avoid a steep correction toward $30,000.
What comes next?
According to IntotheBlock, BTC and ETH have a 0.86 correlation with the Nasdaq 100, implying that this could play a role in Bitcoin’s recovery.
$BTC and $ETH are showing an extremely high correlation to the Nasdaq 100 of 0.86
The historical correlation between crypto and traditional assets is important to track to understand how macro markets affect crypto, and how their relationships evolve. https://t.co/Wx8RxQwatFpic.twitter.com/Vfkns3daJ1
— IntoTheBlock (@intotheblock) January 20, 2022Alex Kruger, a cryptocurrency trader, and economist points out the cryptocurrency market’s link to the stock market. The Nasdaq had previously fallen in lockstep with cryptocurrencies after Netflix reported a 20% drop in earnings.
“The U.S. open and the activities that follow will determine whether #Bitcoin will be nuking more or bouncing higher,” says crypto analyst Michael van de Poppe.
At the time of publication, Bitcoin was trading at $38,313 USD.
