The Galaxy Digital CEO says top crypto by market cap Bitcoin (BTC) could dip lower as digital asset firms continue to deleverage.
In a new interview with CNBC’s Squawk Box, Mike Novogratz says that while he doesn’t foresee BTC dipping to the $13,000 price level, he does believe it will dip further.
“This is a tale as old as time and when the tide went out, what we saw was lots and lots of excessive leverage at centralized crypto companies, ironically, not on-chain companies. Guys like Celsius, Three Arrows, and BlockFi, that just had unbelievable amounts of leverage.
We’ve now seen a lot of these [companies] basically declare bankruptcy, and you’re having this massive deleveraging. I think most of that deleveraging is out of the system.”
Novogratz says that BTC could dip lower before new capital comes into the space, causing it to rally.
“Can we go lower? Of course, we could. It feels we’re 90% through that deleveraging. The problem of course is, for you to go much higher, you need the narrative to re-pick up, and you need new capital to come in.
My instinct is [that] it’s going to be choppy sideways for a while until either the Fed flinches and we get that macro narrative or just the damage is healed.”
Bitcoin is changing hands for $20,873 at time of writing, a 4% increase on the day.
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