Mike Novogratz Warns of Further Bitcoin Price Decline

The next few quarters for the market will be volatile amid negativity on Wall Street, threatening support levels at $30,000 for Bitcoin and $2,000 for Ethereum. This view was put forward by Galaxy Digital founder Mike Novogratz, Bloomberg reports.

The forecast came during an investor conference after the publication of first-quarter results.

Galaxy Digital’s net loss for January–March was $111.7 million, versus a profit of $858.2 million in the same period last year. This was mainly due to unrealized losses on digital assets and investments in trading and principal investment businesses.

As of March 31, Galaxy Digital managed assets of $2.7 billion, down 5% from the December 31 valuation.

“Until we reach a new equilibrium, digital assets will continue to trade in close correlation with the Nasdaq. My intuition tells me there will be further declines ahead, and this will occur in a very unstable, volatile and challenging market”, the specialist explained.

Novogratz warned that the bearish scenario could materialize if the Nasdaq falls below 11,000 (5.36% below the May 9 close).

The tech sector benchmark slipped 4.29% the day before. Against this backdrop, Bitcoin traded below $30,000, Ethereum approached $2,200. The major crypto assets were down roughly 8% at the moment.

According to Coinglass, on May 9 derivative liquidations exceeded $1 billion. Almost $800 million were on long positions.

In market turbulence, there was a sharp deviation of the algorithmic stablecoin TerraUSD (UST) from its 1:1 peg to the U.S. dollar. In the night of May 10, it fell to $0.66 and by the time of writing had recovered to $0.915, according to CoinGecko.

In an interview, Novoograt did not stay on the sidelines of the UST saga. Galaxy Digital, led by him, became one of the investors in Terraform Labs, which is developing the Terra ecosystem.

“They are defending the peg. Let’s see what happens. Of course, if things go wrong, this will adversely affect the ecosystem as a whole”, he explained.

Novogratz noted the emergence of new institutional players with a “long-term orientation” such as BlackRock, Blackstone, Citadel and Apollo Global Management. For him this creates a certain positive outlook for the future of the crypto market.

In April, Novoograt said that a pause in Fed tightening was a condition for Bitcoin’s renewed growth.

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