Mike Novogratz maintains that even ordinary investors should invest 2-3 percent of their portfolios into cryptocurrencies. However, he warns that they should get “real nervous” if they observe the bitcoin price slide below a key level.
The Galaxy Digital founder and longtime crypto bull told CNBC he doesn’t ever expect to see a sub-$5,000 bitcoin again and will grow increasingly fearful if it unexpectedly begins to slide toward that level.
“I think if it goes below $8,500, I’ll get nervous. If it goes below $6,000, I’ll get real nervous,” said Novogratz.
— Squawk Box (@SquawkCNBC) August 1, 2019
Novogratz Warns of Crypto Market Consolidation
The statement closely followed a slightly-off-the-mark prediction made by Novogratz in late June. The billionaire investor had predicted that bitcoin would consolidate in a range defined by $10,000-lows and $14,000-highs.
Nevertheless, the cryptocurrency pierced below the $10,000 level a week after Novogratz issued his forecast. By mid-July, it had established a month-to-date low of $9,071 on San Francisco-based exchange Coinbase.
However, not even a hedge fund titan like Novogratz could have foreseen the negative catalysts that pummeled bitcoin in the weeks following his prediction.
US President Donald Trump’s hateful attack on bitcoin, followed by Treasury Secretary Steven Mnuchin’s treatment of the cryptocurrency as a national security threat, jittered an otherwise-bullish market sentiment.
Congress Admits It Can’t Ban Bitcoin?
US Senator: Even If We Wanted To, We Couldn’t Ban Bitcoin https://t.co/W1jrDPGprV
— CCN Markets (@CCNMarkets) July 31, 2019
On the other hand, Congress heaped occasional praise on bitcoin even as it grilled Facebook for daring to launch its own cryptocurrency.
Just yesterday, Senator Mike Crapo (R-Idaho) admitted that the US government couldn’t stop the Bitcoin protocol.
“If the United States were to decide, and I’m not saying it should, if the United States decided we didn’t want cryptocurrency to happen in the United States and tried to ban it, I’m pretty confident we couldn’t succeed in doing that because this is a global tech, a global innovation,” he said.
Novogratz, for his part, said that banning bitcoin won’t be necessary as long as it competes with gold, not the mighty US dollar.
“Know your customer and anti-money laundering is being…strictly enforced here in the US and Europe,” he said. “The good news is there are lots of institutional players that are coming into the space that [are] going to make access much easier for credible players.”