Bitcoin plummeted this week by as much as $600, seemingly reflecting the latest negative sentiment in the cryptocurrency market.
In an interview with CNBC, Bitcoin bull Mike Novogratz CEO of Galaxy Digital Holdings Ltd attributed the downward trend to a “bunch of negative things that have happened recently”.
Bitcoin price could go as low as $6,500 – Novogratz
Novogratz stated that Bitcoin would need “new energy” in order to pull itself back to the $8,000 range but his outlook was currently bearish. He warned that Bitcoin’s price could go all the way down to $6,500, another 13% drop from current levels.
— Michael Novogratz (@novogratz) October 24, 2019
Bitcoin hit a five-month low on Wednesday – a drop of as much as 10%. Novogratz attributed this to the scathing Libra testimony endured by Zuckerberg in front of US Congress. But he also said that the SEC derailing the Telegram cryptocurrency launch was “a kick in the stomach to the overall crypto ecosystem”.
He felt that Facebook and Libra had made a mistake when it came out and announced the project. They should have said it was a global payment system and not a cryptocurrency.
He argued: “There would have been a lot less angst but they came out and said we’re going to build this new currency and everyone turned their hair on fire.”
Bitcoin remained down for a third consecutive day on Thursday. Coin Rivet reported yesterday that it tested the $7,400 level as more than $200 million dollars in long positions were liquidated on BitMEX.
The outlook isn’t good for the bulls right now with some analysts signalling the first death cross since March 2018 which would result in a sharp correction to the downside.
Bitcoin nears death cross indicator as U.S. lawmakers target Libra https://t.co/9WCJZLi4MJ
— Bloomberg Crypto (@crypto) October 24, 2019
Novogratz still bullish on Bitcoin for the long term
Despite the latest downturn, Novogratz remains bullish on Bitcoin, saying that neither China nor Libra were a concern to BTC.
“Bitcoin is gold, gold’s not a threat to the dollar,”he explained.
Galaxy Digital Holdings is set to launch a Bitcoin fund to act as custodians for the cryptocurrency. This, he said, will allow users to invest in BTC, without having to set up accounts in multiple places.