Cryptocurrency billionaire Mike Novogratz states that the market is now in the bare territory after the recent sale.
Last December, Galaxy Digital CEO Mike Novogratz said Bitcoin needs to maintain support at the $ 42,000 level. Otherwise, the risk will be further below $ 40,000. In the bullish outlook for cryptocurrencies, cryptocurrency billionaires said the withdrawal would provide a decent buying opportunity for institutional investors.
This week, both Bitcoin and Ethereum were below key support levels, and there was pressure to sell out the broader crypto market for equities.
According to Novogratz, a plunge in stock prices exacerbates the negative outlook for cryptocurrencies as a whole, and the drawdowns seen in Nasdaq and other stock indexes mean that the bear market is here.
Commenting on the crypto market outlook and the sale on Wall Street, he said:
“The Russell Index has lost a lot of support and today’s rollover confirmed that it was broken. This is now the bear market. There is a 1.2tr bad equity long on the market. Sell the rally. Don’t buy a dip. “
Earlier, he wrote bad news for Nasdaq and cryptocurrencies, pointing out lower yields, a general slump in bond markets, and an imminent rise in interest rates.
But he said stock markets and cryptocurrencies remain vulnerable to further corruption if interest rates rise. For him, a higher rate would put a 10-year Treasury yield jumping to 2%, putting pressure on cryptocurrencies and stocks.
Despite this prediction, the chief of Galaxy Digital believes that cryptocurrencies could bounce off recent lows. He states that the crypto space is already in pain and now appears to be set at “some buying pressure”.
But he warns that the expected rise may not come unless the stock market stops the annual slides. Novogratz predicts “hardship” if inventories continue to decline. He believes that a deeper stock market sinking scenario limits the potential recovery of cryptography.
2) Cryptocurrencies will struggle to recover until the stock finds a base. That said, cryptocurrencies already have a decent sellout and are hitting some purchase support.
Finally, the best traders are good at gallows humor 😂
— Mike Novogratz (@novogratz) January 20, 2022
All of the top 10 cryptocurrencies by market capitalization are currently down two digits. The sale reduced the market capitalization of cryptocurrencies by billions of dollars, reducing them by 11% to less than $ 2 trillion.
According to Stash CEO Brandon Krieg, the sharp decline in cryptocurrencies as a whole provides a “perfect” opportunity for individual investors to be exposed to cryptocurrencies.
In equities, Nasdaq fell 2.4% on Friday after entering a correction with a 10% slump at the beginning of the week. The S & P 500 is also tracking huge losses this week and is currently down 1.4%.