Bitcoin has collapsed to the lowest level since July 2021, and Mike Novogratz believes that crypto investors should prepare for more pain
During Galaxy Digital’s recent earnings call, CEO Mike Novogratz predicted there was more “damage to do” when talking about the market.
The billionaire believes that crypto will remain extremely correlated with the Nasdaq 100 Index. He is also “pretty confident” that Bitcoin will bounce back once equities find “some kind of bottom.”
Cryptocurrency investors, however, shouldn’t expect a quick recovery. “I don’t think it will be in the next two months,” Novogratz said.
Galaxy Digital reported a $111.7 million loss in the first quarter due to declining cryptocurrency prices.
Bitcoin ended the quarter down 2%, but the biggest cryptocurrency is poised to do worse than the second quarter of 2022. Earlier today, the king of crypto plunged to a low of 52 weeks of $32,637. The cryptocurrency is down 51.94% from its all-time high of $69,044.77, which was recorded on November 10.
According to data provided by IntoTheBlock, the percentage of Bitcoin addresses in profit has dropped below the 50% level for the first time since the pandemic-induced crash that took place in March 2020.
The stock market also had a tough start to the week, with the Dow Jones losing more than 400 points. The stock market also closed in the red on Friday.
The Federal Reserve’s hawkish policy remains the top concern among investors. Even though the central bank has so far ruled out 75 basis point hikes, interest rates are expected to keep surging this year, which will make borrowing funds more expensive.
