In an interview with CNBC last week, Mike Novogratz, the CEO of Galaxy Digital, discussed the cryptocurrency market's prospects. He was questioned about the cryptocurrencies', particularly bitcoin's, decreasing prices.

 “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 shared.

“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:

“We see a tremendous amount of institutional demand on the sidelines. I’m not nervous in the medium-term.”

However, Novogratz alerted, “We are going to have a lot of volatility in the next few weeks.”

After saying, "you will find a lot of support for bitcoin" around $38K to $42K, Novogratz was asked if he thought there was a floor at $38,000 for bitcoin. Galaxy Digital's executive responded:

 “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.”

“On the charts, $38,000, $40,000 feel like where we should bottom,” he emphasized. On Friday, Novogratz tweeted, “We entered the buy zone…”

Bitcoin's price has dropped by more than 12 percent in the last week. The price of BTC is $41,955.39 at the time of writing.

Novogratz has previously stated that institutional investors perceive bitcoin's falling price as an opportunity to buy. When the price of Bitcoin plummeted below $30K in June, he made a similar statement.

Despite plummeting cryptocurrency values, he maintained in September that the crypto sector was in good form. “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.”

Bitcoin Should Bottom Around $40K, Says Mike Novogratz

Bitcoin's price has dropped by more than 12 percent in the last week. The price of BTC is $41,955.39 at the time of writing.

Prabhjeet Bhatla is a cryptocurrency writer covering startups and a researcher since 2020. She has authored many articles for Entrepreneur India and APAC (digital and print) on cryptocurrency and ever-evolving Blockchain, the technology behind Bitcoin, and other cryptocurrencies. She specializes in applied cryptography, privacy-enhanced information storage systems, anonymous cryptocurrencies, elliptic curve crypto-systems, and satellite television piracy.

Bitcoin Should Bottom Around $40K, Says Mike Novogratz

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