The cryptocurrency market has misplaced over $200 billion in the previous few days, with the market cap now beneath $1 trillion.
Mike Novogratz, the founder and chief government officer of Galaxy Digital Holdings Ltd., believes that the cryptocurrency market is closer to the bottom than stocks. He made this assertion throughout a latest interview with Bloomberg.
Cryptocurrencies and stocks have been underperforming because the begin of the 12 months. Most cryptocurrencies have erased the positive factors they collected in 2021 and are buying and selling at their 2020 ranges.
Bitcoin is buying and selling round $22k after dropping extra than 22% of its worth within the final 24 hours. If the bearish development continues, Bitcoin might commerce across the $20k mark for the primary time in additional than a 12 months.
Ether dropped as a lot as 21% to $1,165 on Monday. Bitcoin has misplaced 67% of its worth whereas Ether is down by 74% since hitting file highs in early November.
However, Novogratz mentioned cryptocurrencies are closer to the bottom than stocks. He mentioned;
“Ethereum should hold around $1,000, and it’s $1,200 right now. Bitcoin is around $20,000, $21,000, and it is $23,000, so you are much closer to the bottom in crypto than you are where I think, stocks, are going to have another 15% to 20%. “Until I see the Fed flinch, until I really think, OK the economy is so bad, and the Fed is going to have to stop hiking and even think about cutting, I don’t think it is time to really deploy lots of capital.”
Some market consultants attributed the latest market crash to Celsius’s withdrawal pausing coverage issued on Monday. However, the cryptocurrency market started to file losses since Friday.
The rising inflation ranges proceed to have an effect on the cryptocurrency and inventory markets. The complete cryptocurrency market cap has dropped beneath $1 trillion, down from the all-time excessive of $3 trillion recorded in November 2021.
