Billionaire Michael Novogratz, behind the digital bank Galaxy Digital, told CNBC that while BTC is above $ 40,000, he has no reason to be nervous.
Michael Novogratz who has made a fortune trading on Wall Street and worked for both the New York Fed and Goldman Sachs during his career, has become a leading figure in the cryptocurrency market in recent years. His digital bank Galaxy Digital is one of BTC ‘s largest holders and is also seeking SEC approval from BTC ETFs. Novogratz is also known for the fact that its price predictions for BTC can mostly be classified as “realistic” or “cautious”.
There is no reason to panic
In yesterday’s live broadcast on CNBC, Novogratz stated that the current price movement of BTC would not make him nervous. According to him, it weakened in response to the serious problems of the Chinese developer Evergrande, which some skeptics describe as the beginning of a new financial crisis. According to Novogratz, however, BTC has only been driving in one direction (upwards) for a long time, and it is normal for a period of significant correction to come, which was also supported by negative news from other markets.
“In the short term, the levels I will monitor are very important, $ 40,000 for BTC and $ 2,800 for ETH. As long as this is true, I think the market is in good shape. “
He subsequently stated that the institutional demand for cryptocurrencies is still strong. “I see nothing but a great commitment from our investing and corporate clients,” he added.
The head of Galaxy Digital also commented on the “intrinsic value of BTC” as such. He also used a comparison to a work of art. “A painting by Matisse (French painter) can cost $ 100 million because a few people decide it’s worth $ 100 million. Today, there are 150 million people in the world who have agreed that BTC has some value. That’s enough for me. “
Fear and greed index is in the area of fear
The fall in the price of BTC was also affected by the well-known indicator Fear and Greed Index, which dropped to 21 points out of 100, suggesting extremes of fear in the market (extreme fear). The last time the indicator was at such a low level June 24, 2021when it traded for about $ 34,000.
This indicator usually shows quite accurately when the period is suitable for investing in BTC and when it is not. When there is a lot of fear in the market, historically it is most appropriate to invest because BTC is undervalued. On the contrary, when there is a lot of greed on the market, a price correction will usually come in the foreseeable future. Great greed in the market (79 points out of 100) was the last time September 6 when BTC stood over $ 52,000. As it turned out, even then the indicator successfully indicated that the price would fall in the coming days.