The CEO of Galaxy Digital says that the top cryptocurrency by market capitalization, Bitcoin (BTC) could fall as digital asset companies continue to discount.
in new an interview With CNBC’s Squawk Box, Mike Novogratz says that while he does not expect BTC to drop to the $13,000 price level, he does believe it will fall further.
“It’s a story as old as time, and when the tide went out, what we saw was a lot of excessive leverage in centralized crypto companies, ironically not in blockchain companies. Guys like Celsius, Three Arrows, and BlockFi, who just had no clout. Believe.
We’ve seen a lot now [companies] You declare bankruptcy, and you have this massive debt reduction. I think most of this foreclosure is out of order.
“Can we go any further? Of course we can. It looks like we are past 90% deleveraging” Tweet embed on me # encrypt. “The problem is that you go to a much higher level, and you need the narrative to progress a lot, and you need new capital to come in.” pic.twitter.com/aoWFcorWhX
– Squawk Fund (SquawkCNBC) 7 July 2022
Novogratz says BTC could drop before new capital enters space, causing it to go up.
“Can we go down any further? Of course we can. We seem to be 90% thanks to this deleveraging. The problem, of course, is that in order to go much higher, you need to capture the narrative, and you need fresh capital to enter.”
my instinct [that] It will be choppy sideways for a while until the Fed backs off and we either get the macro story or the damage is undo.
Bitcoin is trading at $20,873 at the time of writing, an increase of 4% from today.
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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
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