Galaxy Digital founder Mike Novogratz has adjusted his Bitcoin (BTC/USD) prediction for the short-term, saying the flagship crypto could bottom out at either $38,000.00 (£28,065.85) or $40,000.00 (£29,542.20).
The BTC bull shared his sentiments during an interview on January 6, adding that big institutions are in the process of opening their positions on BTC and the above levels are attractive.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
In the interview, Novogratz said BTC’s chart shows a likelihood of bottoming out at either $38,000.00 (£28,065.85) or $40,000.00 (£29,542.20).
He added that,
We’ve had this philosophy that the Fed’s going to keep rates low forever and even now, they’re going to raise rates to 2% over two years gradually and continue to buy Treasuries for a while. So, we’re in this liquidity bubble.
Novogratz also pointed out that inflation increased to 6% in the past year. If the inflation does not come down as per the Federal Reserve expectations, he believes that all bets will be off. He added that the 10-year Treasury yields went from 1.35% to 1.70% in a week, and the charts show it might go to 2% then 2.5%.
According to him, asset prices will not go up if the levels hit 2% or 2.5%. To this end, Novogratz believes it is important for portfolios to have tail hedges. He added that investors should be open-minded because the market might be headed into a paradigm shift.
Sticking to crypto market despite the poor performance
Novogratz’s prediction for BTC’s bottom comes weeks after he said the leading crypto by market capitalization would find support at the $42,000.00 (£31,019.73) level. At the time, he pointed out that BTC started 2021 trading at $30,000.00 (£22,157.25), and despite the ups and downs, the market has triggered a mindset change among investors.
At the time of writing, BTC is changing hands at $41,616.85 (£30,730.92) after plunging 3.74% over the past 24 hours. The coin’s current price represents a 39% drop from its November 10 all-time high (ATH) of $68,789.63 (£50,814.56).
Although Novogratz is a sworn BTC proponent, he is also into other cryptocurrencies. For instance, he got a Tattoo inspired by Terra (LUNA), the 10th-largest crypto by capitalization.
While this news could have triggered a rally in LUNA under normal circumstances, the deep bear market inhibited any gains. At the time of writing, LUNA is trading at $71.09 (£52.52) after losing 8.15% in the day.
67% of retail CFD accounts lose money