The prices of Bitcoin and many cryptocurrencies may have fallen by double-digit percentages in the past 24 hours, but some cryptocurrency experts still seem to be cautiously optimistic about the market as a whole.
In an interview with CNBC’s Squawk Box on Wednesday, Galaxy Digital founder Mike Novogratz stated that since the price of Bitcoin fell to $30,000 earlier in the day, it would take a while for the cryptocurrency market to consolidate and find a bottom. At the time of Novogratz’s comment, the price of the crypto asset was approximately $38,000, and it was more than $42,000 when Bitcoin closed yesterday.
Novogratz said: “A series of events came together: tax day, Elon Musk’s tweet, etc., we began to weaken the positive factors in price movements, and now we have a liquidation event. It will not rebound immediately, it will Consolidate for a while.”
Commenting on Bitcoin, Novogratz said:
“This morning we felt like surrendering. With a series of events, including tax days, Elon Musk’s tweets, etc., we began to weaken the positive factors in price changes…it will not rebound anytime soon.
-Squawkbox (@SquawkCNBC) May 19, 2021
Although the CEO of Galaxy Digital estimated that Bitcoin might bottom at $36,000 or $38,000, the price rebounded slightly to $42,434 and then fell below $40,000. At press time, the price of Bitcoin is around $36,000.
Regarding the recent cryptocurrency market volatility, there may be many factors at play. Genesis Global Trading, a leading cryptocurrency broker, reported that due to forced liquidation and leveraged liquidation, there was a Bitcoin-driven sell-off overnight.
At the same time, the company stated that when the price of Ethereum fell below $2,000 for the first time since early April, many Ethereum cash buyers entered the market, and when the price of Bitcoin reached $35,000, macro funds began to buy Bitcoin.
Genesis said: “Although the initial trading volume that rebounded from the low point this morning was not large, we see that the market is stable and the wishes of institutional investors are more consistent.”
Others in the cryptocurrency space – including Konstantin Boyko-Romanovsky, CEO and founder of Allnodes, a verification node hosting platform, and Steve Ehrlich, CEO and co-founder of Voyager Digital – said that the recent price drop may be due to people Reports that China transferred their investments after allegedly banning cryptocurrency exchanges, services and transactions. Three associations in China recently outlined issues related to cryptocurrency investment and warned people about market risks.
Boyko-Romanovsky said: “The correction of the cryptocurrency market is a common phenomenon. However, this does not mean that a bear market is coming. If the blockchain industry shows signs of slowing down, the latter situation will occur. This is consistent with the facts. It’s a far cry.”
“What we are seeing is a correction, but this is an opportunity for retail participants to rebuild themselves and increase their market positions. Cryptocurrencies will not disappear.”