Mike Novogratz, crypto billionaire and early Bitcoin investor, speaks about the crypto market outlook after the latest sell-off. The cryptocurrency market succumbed to widespread selling pressure as Bitcoin and altcoins pared off the gains accumulated in the prior day. The Bitcoin price slid to lows of $37,704 while Ethereum dropped to $2,731 before a slight rebound. The majority of the crypto assets, especially in the top 100, are trading presently in red with most recording significant losses.
The Galaxy Digital CEO earlier predicted that Bitcoin might hit bottom lows at $38,000 as institutional investors prepare to buy amid a sell-off as 2022 progresses. The crypto billionaire had stated in an interview that he thinks big institutions are going to see the $38,000 level as an attractive place to buy.
However, as it stands, Novogratz believes crypto has already had a decent sell-off and is running into some buying support. He gives one condition on which this might happen—if stocks recover—saying, ''Crypto will have a hard time rallying until stocks find a base.''
Noting a breakdown in bonds and tens, the crypto billionaire predicted days before the downside pressure on the Nasdaq and crypto as long as rates go higher.
On-chain analytics firm IntotheBlock foresaw pressure on the Bitcoin price, stating "BTC hangs by a thread," while suggesting that the most important support level for Bitcoin lies between $38,900 and $40,200. Such a critical demand barrier must hold to prevent BTC from a steep correction toward $30,000, IntotheBlock says.
What's next?
According to IntotheBlock, BTC and ETH are showing an extremely high correlation to the Nasdaq 100 of 0.86, suggesting this might play a part in Bitcoin's recovery.
Crypto trader and economist Alex Kruger notes the cryptocurrency market's correlation with the equities market. The Nasdaq crashed earlier in tandem with cryptocurrencies as Netflix earnings plunged 20%.
Crypto analyst Michael van de Poppe says ''The U.S. open and the actions after are going to decide whether #Bitcoin will be nuking more or bouncing up.''
Bitcoin trades at $38,313 at press time.