Mike Novogratz, the Chief Executive Officer of Galaxy Digital, was recently interviewed by Bloomberg, and he made the prediction that it will be some time before Bitcoin and Ethereum regain their bullish sentiments.
Novogratz has forecast that global macro hedge funds would begin purchasing Bitcoin as soon as the Federal Reserve of the United States halts its rate hikes.
The investor is of the opinion that a group of leveraged players, such as the prominent cryptocurrency hedge fund Three Arrows Capital, which has apparently been unable to pay margin calls, has been a contributing factor in the recent decline in the value of cryptocurrencies.
On Wednesday, the price of Bitcoin came dangerously close to dropping below $20,000. The king of cryptocurrencies has seen a reduction of more than 30% since the beginning of the month, and its drop on Wednesday marked the ninth consecutive day of losses.
Although it momentarily increased in value to a high of $22,900, it has now retreated to a level of $21,000 and is presently struggling to maintain its price above the critical threshold of $20,000. BTC is worth $21,044 at press time.
In a tweet from a few weeks ago, Novogratz expressed his conviction that Bitcoin, the most well-known cryptocurrency, would serve as the catalyst for the subsequent cryptocurrency surge. According to him, the Federal Reserve was responsible for the bursting of an asset bubble, which is now causing the market to undergo the process of adapting to the event.
Novogratz also noted that cryptocurrencies are significantly underperforming stocks since there are no buybacks and big pension adjustments that are generating pressure on equities. This is the reason why the market for shares is becoming more competitive.
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Source: Cryptocurrency - investing.com
