Bitcoin is in ‘good shape’ as long as BTC price stays above $40K. On the strength of institutional investor demand, the experienced Bitcoin bull says he’s not “nervous” about crypto.
Unless Bitcoin (BTC) falls below $40,000, Galaxy Digital CEO Mike Novogratz will not be concerned.
On Sept. 21, the renowned bullish investor eased worries about the recent cryptocurrency sell-off in an interview with CNBC.
Novogratz on institutions: “I see nothing but engagement and activity”
Despite the macro situation deteriorating in China and Bitcoin losing up to 10% this week, few well-known crypto industry pundits are negative.
Novogratz agrees, noting that the price dip was more of a good corrective move for a market that has been in “up-only” mode for several months.
“I believe the market got itself a bit too long. The China news spooked people,” he said, adding that he was also concerned about regulatory activities in the United States.
The “very significant levels to watch” in the immediate term for Bitcoin are $40,000 and $2,800 for Ethereum’s coin, Ether (ETH).
“As long as those hold, I believe the market is in an acceptable position,” he elaborated.
The underlying demand from institutional investors, however, has been unaffected by market fluctuations.
“I see nothing but engagement and activity from our investment and business clients,” Novogratz said. As well, he stated that he is not anxious about cryptocurrency.
Dalio joins Bitcoin “value” debate
Recent days have seen other institutional voices quieten.
Despite being an investor himself, Ray Dalio of Bridgewater Associates highlighted that Bitcoin had a “perceived” rather than an “intrinsic” worth in a similar media appearance.
He cautioned that regulation may potentially “kill” the cryptocurrency’s fortunes, referring to the United States as an example.
Despite this, Dalio’s attitude toward Bitcoin has softened significantly since he first mentioned it in public and made an allocation.
When it comes to Bitcoin’s actual value, Novogratz remarked, “We can go into philosophical arguments about what value is”.
“A Matisse artwork may sell for $100 million because a tiny number of individuals believe it is worth that much. Across 150 million individuals all over the globe have determined that Bitcoin is valuable. That is enough for me.”