Mike Novogratz said on Thursday that he expects Bitcoin to bottom at $38,000 as institutional investors prepare to buy the cryptocurrency.
Speaking on CNBC’s “Squawk Box,” Novogratz said: “We see a tremendous amount of institutional demand on the edge.” said and added:
“$38 on the charts [bin], 40 dollars [bin] It looks like the bottom is where we need to be.”
Bitcoin has lost about 11% since January 1st. Bitcoin and other cryptocurrencies have been hit hard in the last two trading days. Assets fell after the minutes of the Federal Reserve’s meeting in December showed policymakers poised to tighten monetary policy potentially faster than previously anticipated.
Bitcoin has slumped to its lowest level in a month and ETH, the second largest cryptocurrency, has lost more than 10% to trade below $3,400.
In addition, Novogratz, the billionaire head of investment management firm Galaxy Digital Holdings, said that despite the recent drop, he is not worried about the performance of the leading crypto asset in the medium term due to institutional demand. The Galaxy Digital CEO seems to have retracted his comments from last week when he said that the top coin by market cap could hold $42,000.
Popular crypto analyst Michaël van de Poppe made a similar prediction when he told his 550,000 Twitter followers that Bitcoin’s critical support level is $41,000.
“It lost support at $46,000 but continued above the critical threshold of $41,000. […] Simply; More and more people are switching to bearish expectations, and this usually happens as they get closer to the bottom. Just like the uptrend grows upward.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.