Billionaire and Galaxy Digital CEO Mike Novogratz is confident that Bitcoin’s price will continue to rise. True, for this he has one condition: the value of the cryptocurrency must remain above the $ 40 thousand mark .
Novogratz sees the recent collapse of the cryptocurrency market as a «healthy correction» that should come from time to time against the background of the overall growth of the industry.
We checked the actual data: today was again a difficult night for Bitcoin and the entire cryptocurrency market as a whole. Specifically, BTC hit a new local bottom at $ 39,600 on Binance and bounced off that level instantly.
This morning, the cryptocurrency is consolidating in the 42 thousand dollar zone.
15 minute Bitcoin chart
At the same time, the top cryptocurrencies in terms of market capitalization, that is, the product of the number of coins and rates, show relative stability on a daily basis. At the same time, over the course of a week, most of them sagged noticeably.
Rating of the main cryptocurrencies by market capitalization
What will happen to Bitcoin
Recall that over the past couple of weeks in the global economy there have been many troubling events for bulls: for example, another decline in the US stock index S P500 and the collapse of shares of one of the largest real estate operators in China, Evergrande Group. However, Novogratz does not see anything surprising in the recent collapse of Bitcoin.
Galaxy Digital CEO Mike Novogratz
Here is his remark, in which the expert shares his vision of what is happening. The quote is from Cointelegraph .
I think the market itself has become too bullish, the news from China scared people.
That is, the billionaire explains the current market reaction by the fears of cryptocurrency owners. Fears about the further development of the economic situation are forcing some of them to get rid of coins, which pushes their rates even lower.
Note that the situation with Evergrande is still inconclusive. At least on the chart of the share price for the last month, the cessation of its fall is noticeable.
Evergrande Stock Chart for the Last Month
At the same time, on a five-day scale, it can be assumed at all that the course has reached its bottom and is gradually bouncing off of it. Perhaps investors are counting on the government’s help in this matter and therefore hope for further growth in the value of shares.
Evergrande Stock Chart for the Last Five Days
The billionaire called the $ 40K and $ 2800 levels important for Bitcoin and Ethereum, respectively.
As long as these lines hold, the market is in good shape.
$ 40K Level on 1-Day Bitcoin Chart
According to journalists, the CEO of Galaxy Digital is still counting on the growing demand for cryptocurrencies from institutional investors – that is, professionals with large sums of money in management. Here is his line.
I see nothing but interest and engagement from our investment and corporate clients.
The levels named by Novogratz are indeed of great importance according to technical analysis . The fall of BTC and ETH below the aforementioned levels can cause panic among many market players, as well as cause a «domino effect» – that is, quick sales of assets to fix losses of those who bought them at a higher price. In this case, the local downtrend may be prolonged.
In terms of fundamental news, Bitcoin has positive factors to stabilize. For example, we are talking about the fresh release of a new application from PayPal , in which users can quickly and conveniently invest in integrated digital products of the payment system. The new application covers applications in both cryptocurrency and other areas.
It also has a tab for managing your investments in staking projects, that is, blocking digital assets to generate income. Below is a YouTube presentation of the application.
PayPal’s announcement of the app coincided with a partnership with the online bank Synchrony Bank to provide a high-yielding savings account to customers. Another important detail is that the funds accumulated on such accounts can be withdrawn to the client’s main account with PayPal and used for online shopping. This means that there will be enough users of the innovation.
New PayPal app
We believe that as long as the adoption of Bitcoin around the world maintains its rapid pace, crypto investors have nothing to worry about – further development will definitely follow the expansion of the scope of the main cryptocurrency, altcoins and their blockchains. Of course, the global global crisis can badly affect the situation in the coin niche in the short term, as it was already in March 2020 due to the coronavirus pandemic. However, Bitcoin itself has never faced a full-fledged financial crisis, so its behavior is difficult to predict.
However, it was created by Satoshi Nakamoto in response to the 2008 crisis. And the limited supply of an asset of 21 million coins will not disappear even in the worst economic conditions.
