Mike Novogratz Remains Bearish On Crypto As Bitcoin Drops To 52 Week Low

Alex Dovbnya

Bitcoin has collapsed to its lowest level since July 2021, and Mike Novogratz believes crypto investors should prepare for more pain

During Galaxy Digital’s recent earnings call, CEO Mike Novogratz predicted there’s more “damage to be done” when we talk about the market.

The billionaire believes crypto will remain extremely correlated with the Nasdaq 100 Index. He is also “pretty confident” that Bitcoin will bounce back once stocks have “found some sort of bottom.”

However, cryptocurrency investors should not expect a quick recovery. “I don’t think it will be in the next two months,” Novogratz said.

Galaxy Digital reported a loss of $111.7 million in the first quarter due to falling cryptocurrency prices.

Bitcoin ended the quarter at 2%, but the largest cryptocurrency is on track to underperform the second quarter of 2022. Earlier today, the crypto king plunged to a 52-week low of $32,637. The cryptocurrency is down 51.94% from its all-time high of $69,044.77, which was recorded on November 10. Image by tradingview.com

According to data from IntoTheBlock, the percentage of Bitcoin addresses making gains has fallen below the 50% level for the first time since the pandemic-induced crash in March 2020.

Image by intotheblock.com

The stock market also had a rough start to the week, with the Dow losing more than 400 points. The stock market also closed in the red on Friday.

The Federal Reserve’s aggressive policy remains the biggest concern among investors. Although the central bank has so far ruled out hikes of 75 basis points, interest rates are expected to continue rising this year, making borrowing more expensive.

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