As the cryptocurrency market and U.S. stocks staged a full-scale carnage today, Mike Novogratz, founder and CEO of cryptocurrency investment bank Galaxy Digital, said on the 14th that the cryptocurrency market is closer to the bottom than U.S. stocks. Meanwhile, Ricardo Salinas Pliego, Mexico’s third-richest man, said it’s time to dip into bitcoin. (Recap:Gold bulls: Bitcoin HODLers will be forced to sell, bottom-hunting will only lose more; Founder of Flyover: Has bought more BTC ETH)
The Federal Reserve may increase interest rate hikes to curb U.S. inflation, which is at a new high in nearly 40 years. The cryptocurrency market and U.S. stocks fell today. Bitcoin (BTC) once fell below the $21,000 mark. Ether (ETH) also fell below the $1,100 mark for a while, the four major U.S. stock indexes fell in unison, and the Dow Jones Industrial Average (DJI) fell nearly 900 points.
In a pessimistic market, according to Bloomberg, the founder and CEO of cryptocurrency investment bank Galaxy Digital, Mike Novogratz, said at the Morgan Stanley Financial Conference on the 14th that he believes the cryptocurrency market It is now closer to a “bottom” than U.S. stocks.
Novogratz pointed out:
The bottom of ether should be around $1000 and now it is $1200 and bitcoin bottom is around $20000 and now it is $23000, so cryptocurrencies are much closer to the bottom, I think US stocks will continue to Down 15% to 20%.
The S&P 500 has fallen about 22% from its record high set in early January, officially entering a technical bear market. Novogratz believes that now is not the time to deploy a lot of capital, unless the Fed has to stop raising interest rates or even consider cutting them because of the bad economy.
Further reading:Founder of BitMEX: If BTC falls below 20,000 and ETH falls below 1,000, there will be huge selling pressure
It is estimated that the fourth quarter will usher in a bull market
Novogratz predicted when he attended the Coindesk 2022 consensus conference on the 11th that the cryptocurrency market will usher in the next bull market cycle in the fourth quarter of this year. , but he believes Bitcoin will bottom out first before U.S. stocks bottom.
I hope that by the fourth quarter, the slowdown will be enough for the Fed to announce that it will stop raising interest rates, and then you will see the next cycle of cryptocurrencies begin, and then Bitcoin will decouple from the US stocks and lead the market, Interest rates in the US will hit 5% and I hope cryptocurrencies will decouple.
When referring to how companies such as Galaxy Digital can survive the next bull market, Novogratz said that the first task is to overcome “the impulse of greed”. He pointed out that investors who entered LUNA earlier can easily win 300 times the return. , but this is unrealistic in the market, emphasizing that “when the ecosystem is really developing rapidly, there is a reason, you have to know what you are investing in, you can’t get 18% profit for free”.
Further reading:Crypto billionaire: ‘LUNA tattoo’ on arm will keep reminding me to be humble about investing
Previously, Novogratz had pessimistically estimated that due to the current sluggish performance of the cryptocurrency market, two-thirds of hedge funds investing in cryptocurrencies would fail, and he asserted that “trading volumes will decline and hedge funds will be forced to restructure , there are about 1,900 cryptocurrency hedge funds in the market, and I guess two-thirds will go bankrupt.”
Mexico’s third richest man calls for a dip in bitcoin
At the same time, Ricardo Salinas Pliego, the third richest man in Mexico who had just had nose surgery, said on the 14th that it is time to buy bitcoins. He posted a photo of himself after the surgery on Twitter and said:
I’m not sure which would hurt more, nose surgery or bitcoin crash, but what I do know is that in a few days I’ll be breathing a lot better than before, and as for the price of bitcoin, I’m sure in a few years we’ll regret not having Buy more bitcoins at this price!
Good thing I brought my own nurse … From which I get “special privileges” 😜 pic.twitter.com/jutcsFKxB7
— Ricardo Salinas Pliego (@RicardoBSalinas) June 13, 2022
According to previous reports from the Dynamic Zone, Prigo revealed when he attended the Miami Bitcoin 2022 conference in April this year that he had as much as 60% of his liquidity portfolio betting on Bitcoin, and the remaining 40% was invested in hard asset stocks. Like oil, gas and gold, he personally believes that bonds are the worst investment of any asset.
Prigo, 66, runs TV Azteca, Mexico’s second-largest television broadcaster, and retailer Grupo Elektra, according to Forbes. Prigo and his family’s current net worth Reached 12 billion US dollars, ranking 156th in the world’s richest list.
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