- According to Mike Novogratz of Bloomberg, it will take time for Bitcoin and Ethereum to regain an optimistic attitude.
- BTC and ETH are struggling to maintain their important support levels of $20,000 and $1,000, respectively.
- According to Novogratz, cryptocurrencies lag behind stocks due to stock buybacks and pension adjustments.
Mike Novogratz, the Chief Executive Officer of Galaxy Digital, was recently interviewed by Bloomberg, and he predicted that Bitcoin and Ethereum would need some time to reclaim their euphoric sentiments.
According to Novogratz, as soon as the Federal Reserve of the United States stops raising interest rates, global macro hedge funds will start buying Bitcoin.
The investor believes that a collection of leveraged players, such as Three Arrows Capital, a renowned cryptocurrency hedge fund that has allegedly been unable to pay margin calls, has contributed to the current decrease in the value of cryptocurrencies.
Bitcoin’s price came perilously close to falling below $20,000 on Wednesday. Since the beginning of the month, the king of cryptocurrencies has lost more than 30% of its value, with Wednesday’s decline marking the ninth straight day of losses.
Although it briefly surged in value to a high of $22,900, it has since fallen to $21,000 and is now battling to keep its price above the vital threshold of $20,000. At the time of publication, BTC was valued $21,044.
In a tweet a few weeks ago, Novogratz revealed his belief that Bitcoin, the most well-known cryptocurrency, would serve as the spark for the ensuing cryptocurrency increase. According to him, the Federal Reserve caused an asset bubble to explode, now driving the market to adjust to the event.
Cryptocurrencies, according to Novogratz, are dramatically underperforming stocks because no buybacks and large pension adjustments are putting pressure on equities. This is why the stock market is becoming increasingly competitive.