The fall of the Bitcoin price to June lows on Wednesday may just be a harbinger of more pain to come for cryptocurrency enthusiasts and hodlers. According to the CEO of crypto merchant bank Galaxy Digital Mike Novogratz, Bitcoin could drop to below $6,500, a level last recorded in May.
Given that the Bitcoin price was at around $8,000 before the midweek drop, this would represent a decline of nearly 20% from Wednesday. Currently, the leading cryptocurrency is ranging in sideway movements just below the $7,500 mark.
Following the drop in the Bitcoin price, the dominance level of the cryptocurrency relative to altcoins has fallen to 65.5%. As the leading cryptocurrency was surging to a yearly high in the second half, the dominance levels were on the rise too reaching 70.42% in September. The market cap of Bitcoin currently stands at over $135 billion.
Speaking to CNBC, Novogratz blamed the fall on a ‘bunch of negative things that have happened recently’:
“One is Telegram ICO being kind of stopped in its tracks by the SEC.”
Per the Galaxy Digital CEO, the decision by the SEC to halt Telegram’s digital token offering was a ‘kick in the stomach to the overall crypto ecosystem’.
There will be respite after the pain though. After a fall to $6,500, the crypto could then rebound to $8,200 before eventually tearing through the $10,000 resistance level, per the crypto merchant bank boss.
According to Novogratz, a rebound could be aided by the positive developments that are already occurring in the sector. This includes the launch of institutional-grade Bitcoin futures trading platform Bakkt by Intercontinental Exchange, the owner of the New York Stock Exchange.
Volumes on the Bakkt platform have been rising lately. Wednesday’s Bitcoin price fall coincided with the platform recording an all-time high on volumes. On October 23, Bakkt recorded Bitcoin volumes of 640, which at current prices is worth $4.8 million.
This article was edited by Samburaj Das.