Photo: Michael Novogratz / Twitter
Bitcoin price plunged yesterday roughly after hitting a 17-month high a day earlier. The world’s most widely traded cryptocurrency dropped to a low of $10,373.75 Thursday afternoon what seems to be a $3,000 drop from where it was trading Wednesday.
Bitcoin price had rallied to a high of $13,485.85 Wednesday afternoon and it was its highest price since January 2018. It then fell sharply after U.S. markets closed, trading around $10,823. After that, it rose back to around $2,188.08 but at the time of writing it again was in a steep fall of 9.11% with the price hovering around $11,364.00.
This kind of situation can be frustrating for any investor, no matter how big or small but it sure has been for billionaire investor Mike Novogratz.
The CEO of Galaxy Digital Holdings Ltd. confirmed he sold “a little bit” of Bitcoin on Wednesday, but added that he wishes he’d sold “a lot.” He said:
“If you were perfect, you’d have sold a whole bunch yesterday. When you go parabolic you have to.”
However, one of the biggest crypto proponents he is still pretty optimistic especially regarding Facebook’s Libra that he calls a catalyst for Bitcoin breaking above $10,000.
“One of the largest companies in the world said we believe in cryptocurrencies. If you’re an institutional investor who’s getting close and still worried about investing, it makes you that much more confident.”
Novogratz also said Bitcoin’s activity is largely driven by capital flight from China:
“A huge amount of the volumes of what’s going on in Bitcoin and other currencies is coming out of Asia.”
He explained that the Chinese government is making moving money out of the country very difficult for its citizens. So it’s “capital flight from China” through BTC, though illegally. The government wants to have more control of the yuan, but this has only driven Chinese investors into the arms of Bitcoin.
Because prices were still falling and not getting any near its 2017 record, Novogratz is confident that Bitcoin will likely sit in a range between $10,000 and $14,000 price levels. He also confirmed he plans to buy back at $10k.
Still the crypto Twitter isn’t sure who to blame:
Co-founder of Morgan Creek Capital Investment Anthony Pompliano seems to agree about China tweeting:
The country with the strongest military historically controlled the global reserve currency.
The best defense is a great offense in the information age.
There is nothing more secure than the Bitcoin network, which increases the odds it will become the global reserve currency 🔥
— Pomp 🌪 (@APompliano) June 27, 2019
and the crypto expert Jimmy song says:
Bitcoin teaches us that the hardest expectations to manage are our own.
— Jimmy Song (송재준) (@jimmysong) June 28, 2019
But the truth lays somewhere in the middle as one trader explains:
The halvening is now 328 days away.
Bitcoin’s inflation rate will be cut to 1.8%.
Why is that important?
It will be lower than central banks 2% inflation rate and even with gold’s supply rate yearly increase.
— Rhythm (@Rhythmtrader) June 27, 2019
However, John Spallanzani, portfolio manager at Miller Value Partners thinks that Novogratz’s, lamenting on not having taken more money off the table may have contributed to BTC’s falling. He said:
“It’s a very tight-knit market. Most likely Novo hitting bids spread like wildfire.”
However, maybe the most realistic point of view of all has Mati Greenspan, senior market analyst at trading platform eToro: “It seems the crypto market got a bit too hot yesterday and is now cooling down,” he wrote in a note. “What an incredible market where the price can crash about 15 percent in less than an hour and bring us back to the highs of the previous trading day.”
