Bitcoin has been on a downtrend since the last quarter of 2021, and that trend has spilled over into the new year. With the full opening of January, investor sentiment followed suit as more than $500 billion of funds disappeared from the market. This pushed the price of Bitcoin down to the dreaded $40,000 price range.
One question on the minds of investors is, has the market seen Bitcoin bottom? Billionaire Mike Novogratz attempted to answer this question by offering his views on the issue and predicting a bottom for Bitcoin.
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Bitcoin should bottom between $38,000 and $40,000
Galaxy Digital CEO Mike Novogratz has been a positive voice in the cryptocurrency space and has given his views on the market at various times.This time, Novogratz and NBC Finance ChannelSquawk Box, who predicts where the bottom of the current Bitcoin downtrend will be.
The billionaire CEO places the bottom of the current downtrend at $38,000, which he doesn’t think Bitcoin will break below. Currently, Bitcoin bottomed out at $40,680 during the drop, from which the digital asset has since recovered. But if Novogratz’s prediction is anything to go by, the market could fall again before a full-blown recovery trend emerges.
BTC price tumbles down to $41,475 | Source: BTCUSD on TradingView.com
The CEO gave the reason for this bottom as institutional investors took advantage of low prices to get into digital assets. I “know that large institutions are going through their process to set up positions. They will see these as attractive levels of buying,” Novogratz said.
“On the charts, $38,000, $40,000 feels like where we should be bottoming,” he added.
Inflation will drive growth
Moving on, Novogratz shared more about his stance on this predicted Bitcoin bottom. One of them is inflation.
Those who have been following the market know that rising inflation has led to growing concerns among investors who are looking for alternatives to gold as an inflation hedge. Bitcoin is the natural choice for these investors.
The Fed thinks inflation will start to fall, but the CEO explained that if that doesn’t go according to plan, “all bets are off.”
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Digital Galaxy, with Novogratz as CEO, is known in the space as a big proponent of Bitcoin. The company currently holds more than 12,000 bitcoins, making it one of the largest holdings of bitcoins in the world.
Mike Novogratz, who himself holds a personal stake in cryptocurrencies, revealed that he held about 85% of his net worth in cryptocurrencies, which at the time translated into the billionaire’s $4.8 billion cryptocurrency holdings.
Featured image from Stock Hax, chart from TradingView.com