Billionaire Mike Novogratz has warned investors not to expect much of a recovery in Bitcoin any time soon. Novogratz who is the CEO of commercial bank for digital assets Galaxy Digital has long been a huge supporter of Bitcoin and its benefits. However, he recently shared his thoughts on the current market climate and what investors can expect in the coming days.
Confidence will take time
The recent market crash has seriously affected investor confidence in the cryptocurrency market. As such, selling over digital assets like bitcoin has been rampant. Sentiment has also suffered significantly during this period and has led to low momentum in the market. This is not going to change any time soon.
Related reading | Bitcoin bounced back before hitting the 2017 peak, is the bottom inside?
talk with BloombergThe CEO of Galaxy Digital explained that it will take some time for bitcoin to return to its previous levels. He’s bringing that back to the level of investor confidence when it comes to putting money into crypto, which he says will take some time for that confidence to return.
Bears take hold of BTC | Source: BTCUSD on TradingView.com
Novogratz also talks about the current economic climate. The only thing that shook various financial markets was the interest rate hike by the Federal Reserve, the latest hike that occurred on Wednesday. He notes that the Fed will have to stop raising rates at some point, and once that happens, more money from global macro hedge funds will flow into the market. At this point, Novogratz acknowledges that Galaxy Digital will add more bitcoin to its holdings.
Bitcoin on the charts
Bitcoin price continues to fluctuate wildly between $20,000 and $21,000. This shows that while there is a growing resistance at the $22,000 point, there is also good support accumulating below $20,000.
However, the short-term prognosis for the digital asset does not look good. However, there are still some indications of some recovery in the market. One of these is the low cycle before every Bitcoin halving.
Usually, the bottom is reached at around 520 days, or more or takes a few weeks, before the next Bitcoin halving. This was the case in the last two halves. If digital assets follow this trend, the bottom will be reached sometime in the last quarter of the year. Although this points to some recovery in the short term, it also means that the current declines may not be the end of the decline if the bottom is expected to come in the fourth quarter.
Bitcoin is trading at $20,902 at the time of writing.
Featured image from Watcher Guru, chart from TradingView.com
Disclaimer: The following editorial represents the author’s views, and may not necessarily reflect the views of a Bitcoinist. Bitcoinist is an advocate of both financial and creative freedom.
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