Mike Novogratz, Crypto billionaire and early Bitcoin investor, talks about the crypto market outlook after the latest sell-off. The crypto market succumbs to widespread selling pressure as Bitcoin and altcoins deduct the gains accumulated in the previous day. Bitcoin price dropped to a low of $37,704 while Ethereum dropped to $2,731 before recovering slightly. The majority of crypto assets, especially in the top 100, are currently trading in the red with most of the significant losses recorded.
2) Cryptocurrencies will have a hard time recovering until stocks find a base. That said, the cryptocurrency has had a nice sell-off and is running into some buying support.
In the end, the best traders have a sense of humor in the gallows 😂
– Mike Novogratz (@novogratz) January 20, 2022
The Galaxy Digital CEO previously predicted that Bitcoin could bottom out at $38,000 as institutional investors prepare to buy amid the sell-off as 2022 gets underway. The crypto billionaire stated in an interview that he thinks large institutions will see the $38,000 level as an attractive place to buy.
As it stands, however, Novogratz believes the cryptocurrency has had a good sell-off and is running into some buying support. He laid out a condition that this could happen—if stocks recover—saying, “Cryptocurrency will have a hard time recovering until stocks find a base. ”
Noting the breakdown in bonds and dozens, the crypto billionaire predicted a few days ago that pressure would decrease on Nasdaq and crypto as long as rates move higher.
Online analytics firm IntotheBlock foresees pressure on Bitcoin price, stating that “BTC is suspended by a chain,” while also suggesting that the most important support for Bitcoin lies between $38,900 and $40,200. . IntotheBlock says such a critical demand barrier must hold to prevent BTC from a steep correction towards $30,000.
What’s next?
Based on IntotheBlock, BTC and ETH are showing an extremely high correlation with the Nasdaq 100 of 0.86, suggesting that this may play a part in Bitcoin’s recovery.
$BTC and $ ETH is showing an extremely high correlation with the Nasdaq 100 of 0.86
The historical correlation between cryptocurrencies and traditional assets is important to keep an eye on to understand how the macro market affects cryptocurrencies and how their relationship evolves. https://t.co/Wx8RxQwatF pic.twitter.com/Vfkns3daJ1
– IntoTheBlock (@intotheblock) January 20, 2022
Economist and Cryptocurrency Trader Alex Kruger note the correlation of the cryptocurrency market with the stock market. Nasdaq crashed earlier along with crypto as earnings from Netflix fell 20%.
Cryptocurrency Analyst Michael van de Poppe The US opens up and the actions that follow will determine whether #Bitcoin will rise further or bounce. ”
Bitcoin trades at $38,313 at press time.
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