Bitcoin fell to its lowest level since July 2021 and could experience more corrections in the near term, anticipates the billionaire CEO of Galaxy Digital.
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The multi-millionaire investor and Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. Mike Novogratz, expressed his long-term optimism for price developments in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market; however, in the short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. term, he believes we could see sharper declines. The media Finbold y U.Today they said.
In an interview with Squawk Box de CNBC Novogratz shared his analysis on the current bearish scenario seen in the digital asset market. Bitcoin has plummeted 6% this Monday to trade at slightly over USD $32,000 a drop of over $6,000 in the last 7 days, and about 50% from its all-time high (ATH) above USD$68,000 in November 2021.
Losses spread a price difference between asking and selling prices of the asset. across the rest of the market, whose overall market an area or arena, online or offline, in which commercial dealings are conducted. capitalization has fallen 6% in the last 24 hours. Ethereum a decentralized open-source blockchain with smart contracts functionality. the second largest cryptocurrency, is trading around USD $2,300, down 16% from a week ago. Other major cryptoassets, such as XRP, Solana y Cardano also recorded significant price declines this day.
More falls on the horizon
When asked about this scenario, Novogratz said he believes cryptocurrencies will continue to be extremely correlated with the stock market index of Nasdaq . While the reputed former hedge fund manager anticipates that over time this correlation between Bitcoin and the stock market will break, it projects that in the short term we could see further corrections.
Crypto is highly correlated with the Nasdaq, my guess is that over time that correlation will break down. We have already seen the beta of the breakdown. Nasdaq falls 3%, cryptocurrencies fall 9%. But I do believe there will be more pain to come.
There is also ” pretty sure ” that Bitcoin se recuperará una vez que las acciones encuentren “ some kind of fund “. However, he did not encourage cryptocurrency investors to expect a quick recovery. “ I don’t think it will be in the next two months “ said Novogratz, CEO of Galaxy Digital digital technologies are these electronic tools that have the ability to generate, store or even process data. The price of the product is expected to rebound.
Novogratz’s remarks come shortly after match Cathie Wood from ARK Invest investing is when you put money in a financial scheme with the intent of making a gain. in its bullish projection for BTC reiterating the possibility that the asset could reach $1 million in the next few years. “ I’m a believer in the $500,000 goal in the medium term, but it can go up to $1 million at some point. said the investor during an event in The Bahamas.
Bitcoin in bearish territory
The price correction a correction is a pullback of an asset’s price of at least 10% to adjust for over-valuation. in the cryptocurrency market comes at a time in the midst of a major shakeout for financial markets in the face of a complex macroeconomic environment. As reported byThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.the most recent drop in the price of Bitcoin coincidió con un importante descenso en el Nasdaq Composite an index of leading U.S. technology companies.
According to the report, tech stocks experienced their biggest daily drop in nearly two years as they fell 5% on Thursday, tracking data from the index. This Monday, Nasdaq Composite is down nearly 3%.
Bitcoin had registered a notable price spike on Wednesday last week, after the U.S. Federal Reserve (FED) to announce another half-percentage point increase for interest rates (the highest in almost 20 years). At the time, the news seemed to boost the flagship cryptocurrency, which rose to USD $40,000. The rest of the market was also boosted.
However, the uptrend didn’t last long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. and the next day the prices plummeted . The Fed’s move comes at a time when US inflation a general increase in prices and fall in the purchasing value of money. is at its highest point in 40 years. In addition to record levels of inflation, a symptom also suffered by other world economies, the problems of the Russian invasion in Ukraine, these and other factors have caused global markets to experience extreme volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. throughout the year.
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Article by Hannah Estefania Perez / DiarioBitcoin
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