Bitcoin has lost more than 5% of its value in the past 24 hours, and Mike Novogratz expects further declines.
Mike Novogratz, CEO of Galaxy Digital, predicted earlier today that Bitcoin’s price would fall toward the $38,000 level. According to Novogratz, Bitcoin’s bottom will likely form around that range.
The Galaxy Digital chief made the remarks during an interview with CNBC Squawk Box earlier today. He said:
“I know large institutions that follow their process to take positions, and I think they will view those levels as attractive buying opportunities. On the charts, $38k, $40k feels like where we should bottom.”
The leading cryptocurrency is down more than 30% from its all-time high of $69,000 reached in November. Over the last 24 hours, Bitcoin dropped more than 5% and is trading above $43,000 per coin.
Bitcoin has struggled below the $50,000 region in recent weeks and could face further losses if Novogratz’s prediction proves accurate. He also added:
“All of us, every investor, must have a part of our mind asking: ‘Are we entering a paradigm shift?’ We have this mindset that the Fed will keep rates low forever, and now they will gradually raise rates to around 2% over two years while still buying Treasuries for some time. So we are in this liquidity bubble.”
The broader cryptocurrency market has underperformed in recent weeks. Total crypto market capitalization has fallen from the November peak of $3 trillion to just above $2 trillion today.
Major altcoins—including Ether, Binance Coin, Cardano, Solana, Luna and others—have each lost more than 5% of their value over the past week.