novogratz
The Galaxy Digital CEO is also quick to point out that the bitcoin price has advanced by nearly a triple-digit percentage year-to-date. | Credit: Evan Agostini/Invision/AP

Bitcoin’s recent plunge to below $7,000 pretty much shell-shocked much of the crypto community, leaving some market participants scrambling and others to speculate about why it happened. The months leading up to the next bitcoin halving event are supposed to be exciting, but bitcoin has once again proven its unpredictable not to mention highly volatile nature.

Source: Twitter

No crypto investors have been unscathed by the fallout, billionaire trader Mike Novogratz included. The Galaxy Digital CEO has felt the pain of the November sell-off, seemingly turning his attention to other causes when things seemed the darkest. Given that it’s darkest just before the dawn, bitcoin could break out of this rut sooner than later – but the clock is ticking.

Novogratz tipped his hand to how he is navigating the market and rather than making price predictions has described a fork in the road for the cryptocurrency. He is giving the BTC price until Wednesday to recover to $7,500, saying that if it fails to do so bitcoin will find itself in a prickly situation – stuck in a range of $6,000 at the low end and $7,400 at the high end.

Not to worry. Novogratz isn’t going anywhere, telling CCN:

Charts don’t lie. But I still love bitcoin.

The last time Novogratz shared his outlook for the bitcoin price, he guided toward a range of $7,000 to $10,000 with potential for greater upside, which successfully proved to play out for months.

Despite the critical juncture in which bitcoin finds itself today, sophisticated traders are always the first to remind the crypto community about the bigger picture, and here again Novogratz doesn’t disappoint. The former Fortress hedge fund manager points out that BTC has still advanced by nearly a triple-digit percentage year-to-date, which incidentally is more than can be said for other asset classes, gold included.

novogratz
Source: Twitter

Novogratz’s social media followers were relieved to hear him weigh in on the crypto market meltdown, with more than one of them suggesting he give fate a little nudge.

Source: Twitter

Look Out Below

So what is behind bitcoin’s bad mood? Mati Greenspan, founder of QuantumEconomics.io, said it best when he described the weekend trading activity as a “crypto crush,” one that left some coins down more than 10% since Friday.

China certainly has given a whipsawing to the market by playing chicken with the cryptocurrency space. And no doubt that has spooked investors. Greenspan points to the Crypto Fear and Greed Index, which is currently trading at a two-month low, reflecting extreme levels of fear.

Source: Alternative.me 

But China can’t be blamed for all of the selling, especially considering that the bitcoin price surrendered all of its gains since the Chinese government declared their affection for the blockchain. Greenspan states:

What seems most likely to me, and of course will be very difficult to prove, is that some of the miners who had been stashing bitcoin during the bull run are releasing additional supply on the market.

There are several nuances to Greenspan’s theory, involving new mining rigs, old mining rigs, and potential price wars, oh my. In the meantime, bitcoin is trading back above $7,100 and is inching ever so slowly toward Novogratz’s target.

This article was edited by Samburaj Das.

You May Also Like

Analyst Explains Why Bitcoin Price Could Plummet to $2,020 in 2020

An analyst says bitcoin could crash to $2,000 to $3,000 range as…

VeChain (VET) Jumps a Whooping 26%, Thanks to an Iconic Retro Game Remake

Contrary to the rest of the crypto market VeChain (VET) is up 26% today and showing no signs of slowing down, but what’s driving the token?

Holders of Over 11 Million Bitcoin are Proving That Hodl Is Not Just a Meme

HODL is such a popular trading strategy in the crypto community that…

Bitcoin Price Suffered 31% November Slump But a Hostile China Boosts Outlook

Bitcoin price dropped by 31% since October. Yet, Spencer Bogart sees strengthening fundamentals pushing BTC up in the medium-term.

Limited Edition Bitcoin Watch Beckons Mt. Gox Remnants

A limited edition bitcoin watch with a widely known Mt. Gox wallet was spotted in Abu Dhabi. Is the royal family linked to the scandal?

Analyst Dispels the Myth: Bakkt Futures are Not Backed by Bitcoin

Bakkt’s arrival was supposed to be bullish for bitcoin. With growing volume, the demand has not translated into bitcoin prices. Here’s why.