Don’t expect a Bitcoin recovery anytime soon, CEO of Galaxy Digital


Billionaire Mike Novogratz has warned investors not to expect much of a recovery in bitcoin anytime soon. Novogratz, who is the CEO of the digital asset bank Galaxy Digital, has always been a big believer in Bitcoin and its benefits. However, he recently shared his thoughts on the current market environment and what investors should expect in the coming days.

Trust takes a while

The recent market crash has severely eroded investor confidence in the cryptocurrency market. As such, the sell-offs of digital assets like bitcoin have been rampant. Sentiment has also suffered greatly during this period, leading to low momentum in the market. This isn’t changing any time soon.

Related literature | Bitcoin Bounces Back Before It Hits 2017 Peak, Is The Bottom In It?

Speak with Bloomberg, the Galaxy Digital CEO explained that it will take a while for bitcoin to recover to previous levels. He attributes this to investors’ level of confidence when it comes to putting money into crypto, which he says will take some time for that confidence to return.

Bears grab BTC | Source: BTCUSD on TradingView.com

Novogratz also talks about the current economic climate. One thing that has turned several financial markets on its head is the Fed’s rate hike, the most recent on Wednesday. He notes that at some point the Fed would have to let go of rate hikes and once it does, more money from global macro hedge funds will flow into the market. At this point, Novogratz admits that Galaxy Digital will add more bitcoin to its holdings.

Bitcoin in the charts

The price of bitcoin continues to fluctuate widely between $20,000 and $21,000. This shows that while there is increasing resistance near the $22,000 mark, good support is also building in the low $20,000.

However, the short-term forecast for the digital asset is not looking good. However, there are still some indicators that point to some recovery in the market. One is the low cycle before each bitcoin halving.

Related literature | Bitcoin Financing Rates Remain Negative, But Open Interest Tells A Different Story

Typically, the bottom is reached around 520 days, a few weeks or more, before the next bitcoin halving. This was the case for the last two halvings. If the digital asset follows this trend, it will bottom out sometime in the last quarter of the year. While this points to some near-term recovery, it also means that the current lows may not be the end of the decline if the bottom is expected to hit in the fourth quarter.

Bitcoin is trading at $20,902 at the time of writing.

Featured image of Watcher Guru, chart from TradingView.com

Disclaimer: The following opinion piece represents the opinion of the author and does not necessarily reflect Bitcoinist’s opinion. Bitcoinist is an advocate of both creative and financial freedom.

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