The broader cryptocurrency market has been in a downtrend since last month, with Bitcoin’s price falling more than 20% during that period.
The leading cryptocurrency has underperformed in recent weeks. Bitcoin hit a fresh all-time high above $69,000 a month ago, but it has since weakened and lost over 20% of its value.
At the time of writing, Bitcoin is struggling to hold above the $50,000 level and is trading at roughly $49,000 per coin. Galaxy Digital CEO and crypto billionaire Mike Novogratz, however, believes Bitcoin will remain above the $40,000 mark:
“I think $42,000 should hold, that should be the bottom of this move. It would surprise me if it went below $40,000,” he said.
Novogratz also commented on the recent sell-off, noting that so many more people are participating in Bitcoin now that it would be difficult for the price to drop below $40,000.
“I think $42,000 should hold, that should be the bottom of this move. It would surprise me if it went below $40,000,” says @Novogratz on #Bitcoin’s latest dip $BTC. “There’s so many more people participating on it. It’s hard for me to see if going below.” pic.twitter.com/4VuYIw01dF
— Squawk Box (@SquawkCNBC) December 8, 2021
Novogratz is one of the most optimistic advocates in the crypto space. He has previously predicted that the total cryptocurrency market capitalization could reach $20 trillion in the coming years. The market cap reached about $3 trillion last month after Bitcoin and Ether hit new all-time highs.
Since then, total market capitalization has slipped below $2.5 trillion. Despite the recent pullback, market analysts still project that Bitcoin could reach $100,000 in the coming months — a move that would require roughly a 100% increase from current levels.
Reaching $100,000 before the end of the year now appears unlikely. Ether and many altcoins are also underperforming; Ether is finding it difficult to stay above the $4,000 level.
The downturn could deepen in the short term while the broader cryptocurrency market continues to underperform.