Here’s What Triggered Bitcoin’s Painful Plunge, According to Galaxy Digital’s Mike Novogratz

Billionaire Mike Novogratz believes Bitcoin’s big price drop this week is no surprise.

The value of the top coin plunged by 17% to $43,050 on Tuesday, its lowest price in nearly a month.

In a new interview with Bloomberg TV, the CEO of digital asset firm Galaxy Digital says BTC became overbought as a series of fundamental factors and positive news stories triggered hype among investors.

[0:32] “The market got too long. It got long for good reasons. I think in the last eight weeks, there has been a giant realization that crypto’s not just Bitcoin being bought as a hedge against bad monetary and fiscal policy, but maybe more importantly, it’s web 3.0. It’s the internet of value transfer…

[0:52] When you see companies like Visa buying an NFT and saying they think digital goods is a big part of their future; Walmart and Amazon, the two biggest retailers in the world putting up help wanted for science crypto engineers and crypto experts, there’s a realization that this is a technology play and no investor wants to miss the next internet. This is the next internet.”

Novogratz says that while it is difficult to predict the short-term movement of the crypto market, it is easy to see its long-term trajectory.

[3:44] “Just look at a 15-year or 12-year long chart of the Bitcoin price and think about the adoption that is happening all over the world. You know it is now an asset. It’s a store of value…

[4:03] Stan Druckenmiller said it was an asset. He’s literally the best investor we’ve seen in 30 years. It’s an asset. There are enough institutions that have said they believe in this as a store of value.”

Featured Image: Shutterstock/Pavel Chagochkin/Vladimir Sazonov