Since the fourth quarter of 2021, Bitcoin has been on a decreasing trend, which has continued into the New Year. As January comes to a close, investors are disappointed as more than $500 billion has been wiped off the market. As a result, bitcoin’s price has dropped to the feared $40,000 level.
One question that investors continue to have is, “Has the market reached the bottom of bitcoin?” Billionaire Mike Novogratz seeks to respond to this by presenting his opinions on the subject and forecasting the bitcoin bottom.
Bitcoin bottom out between $38,000 and $40,000
Galaxy Digital CEO Mike Novogratz has always been an active voice in the crypto industry, and he has shared his opinions on the market at various times. This time, Novogratz, talking with CNBC’s Squawk Box, projected where the bottom of the current bitcoin decline will be.
The wealthy CEO, Novogratz set the current downtrend’s floor at $38,000, a level he does not expect Bitcoin to fall below. Bitcoin’s current low during the downturn has been $40,680, from which it has subsequently rebounded. However, if Novogratz’s projections are correct, the market may see another slump before experiencing a full-fledged rebound trend.
The CEO explains that this low is due to institutional investors taking advantage of cheap pricing to enter the digital asset. I know large institutions that are going through the process of filling slots. “They’re going to perceive those as appealing levels to purchase,” Novogratz said. “On the charts, $38,000 to $40,000 feels like the bottom,” he noted.
Growth will be Driven by Inflation
Continuing, Novogratz discusses his thoughts on the bitcoin bottom projection. Inflation has been one of them. Those who have been following the markets are aware that growing inflation rates have increased investor fears, prompting them to seek alternatives to gold as an inflation hedge. Bitcoin has logically emerged as a viable choice for these investors.
The Fed anticipates that inflation will begin to fall, but the CEO stated that if this does not happen, “all bets are off.” Digital Galaxy, which Novogratz leads as CEO, has created a reputation for itself in the area as a strong supporter of bitcoin. The corporation presently possesses over 12,000 bitcoins, making it one of the world’s top bitcoin holders. Mike Novogratz has a personal investment in cryptocurrencies, indicating that he controls approximately 85 percent of his net worth in cryptocurrencies, which at the time equated to the billionaire owning up to $4.8 billion in crypto.