Mike Novogratz, a crypto billionaire, claims that the markets are now in bear territory due to recent sell-offs.
Galaxy Digital CEO Mike Novogratz stated that Bitcoin must maintain support at $42,000 to avoid further falls below $40,000. The crypto billionaire expressed a bullish outlook on crypto and noted that the pullback would still present an opportunity for institutional investors to buy.
The crypto market has been under pressure from equities this week, with Bitcoin and Ethereum both falling below key support levels.
Novogratz claims that crypto’s tumbling stocks have worsened the bad outlook and that the bearish market is now, based on the drawdown in Nasdaq stock indexes and other stock exchanges.
Commenting on both the cryptocurrency market outlook and Wall Street’s sell-off, he said:
“The Russel index broke a major support and today’s roll over confirmed it’s broken. This is now a bearish market. Market is up to 1.2tr because of longs for bad equity. Sell rallies. Don’t buy dips.”
He previously pointed out the decline in yields, general downturns in the bond markets and impending interest rates hikes as bad news for Nasdaq/cryptocurrencies.
But, he statedRates going up would make crypto and the stock market more vulnerable to further rot. Higher rates would lead to 10-year Treasury yields jumping to 2%, which would squeeze crypto and stocks lower.
Galaxy Digital’s chief executive believes that cryptocurrency has a chance to rebound from recent lows despite the projection. He notes that the crypto space has already felt the pain and currently looks set for “some buying pressure.”
He warns that upside potential might not occur if stocks continue to slide. If the stocks continue to tank, Novogratz forecasts a “hard time.” He believes that a scenario where stock markets sink even deeper would limit any potential rally for crypto.
2) Crypto won’t be able to rally until stocks find their base. However, crypto has seen a good sell-off and is now finding some buying support.
The best traders know how to use gallows humor.😂
— Mike Novogratz (@novogratz) January 20, 2022
The market capitalisation of all the top ten cryptocurrency markets is down by double digits. The crypto market capitalisation total has dropped by billions. It was cut by 11%, bringing it down to $2 trillion.
Brandon Krieg, CEO of Stash, says that the sharp drop in crypto prices offers a “perfect” opportunity to expose retail investors to cryptocurrencies.
The Nasdaq fell 2.4% on Friday, following a correction that began earlier in the week after a 10% slump. The S&P 500 has also suffered huge losses this week, with 1.4% of its stock market value.
