Against the backdrop that the Federal Reserve may increase interest rates to curb U.S. inflation, which is at a new high in nearly 40 years, the cryptocurrency market and U.S. stocks fell across the board today, and Bitcoin (BTC) once fell below the $21,000 mark , Ether (ETH) also once fell below the $1,100 mark, the four major U.S. stock indexes fell in unison, and the Dow Jones Industrial Average (DJI) fell nearly 900 points.
In the pessimistic atmosphere of the market, according to “Bloomberg”, the founder and CEO of cryptocurrency investment bank Galaxy Digital, Mike Novogratz, said at the Morgan Stanley financial conference on the 14th that he believes that the cryptocurrency market It is now closer to the bottom than US stocks.
Novogratz pointed out: Ether should bottom around $1,000, and now it’s $1,200, Bitcoin bottomed around $20,000, and now it’s $23,000, so cryptocurrencies are much closer to the bottom, I I believe that US stocks will fall another 15% to 20%.
The S&P 500 has fallen about 22% from its record high set in early January, officially entering a technical bear market. Novogratz believes that now is not the time to deploy a lot of capital, unless the Fed has to stop raising interest rates or even consider cutting them because of the bad economy.
It is estimated that the fourth quarter will usher in a bull market
When Novogratz attended the Coindesk 2022 consensus conference on the 11th, he predicted that the cryptocurrency market will usher in the next bull market cycle in the fourth quarter of this year. He believes Bitcoin will bottom out first before U.S. stocks bottom.
Novogratz said: “I hope that by the fourth quarter, the economic slowdown will be enough for the Fed to announce that it will pause interest rate hikes, and then you will see the start of the next cycle of cryptocurrencies, and then Bitcoin will cooperate with The U.S. stock market is decoupling, leading the market, and interest rates in the United States will reach 5%. I hope that cryptocurrencies will decouple.
When referring to how companies such as Galaxy Digital can survive the next bull market, Novogratz said that the first task is to overcome the greedy impulse. He pointed out that investors who entered LUNA earlier can easily win 300 times the return, but This is unrealistic in the market, emphasizing that “when the ecosystem is really developing rapidly, there is a reason, you have to know what you are investing in, you can’t get 18% profit for free”.
Previously, Novogratz had pessimistically estimated that due to the current sluggish performance of the cryptocurrency market, two-thirds of hedge funds investing in cryptocurrencies would fail. He asserted that “trading volumes will decline and hedge funds will be forced to restructure. , there are about 1,900 cryptocurrency hedge funds in the market, and I guess two-thirds will go bankrupt.”
Mexico’s third richest man calls for a dip in bitcoin
At the same time, Ricardo Salinas Pliego, the third richest man in Mexico who just had his nose surgery, said on the 14th that it is time to buy bitcoins. He posted a photo of himself after the surgery on Twitter and said: I’m not sure if nose surgery or a bitcoin crash would hurt more, but what I do know is that in a few days I’ll be breathing a lot better than before, and as for the price of bitcoin, I’m sure in a few years we’ll regret not having Buy more bitcoins at this price!
According to a previous report by 120BTC.com, Prigo revealed when he attended the Miami Bitcoin 2022 conference in April this year that up to 60% of his liquidity portfolio is bet on Bitcoin, and the remaining 40% is invested in hard asset stocks , such as oil, gas and gold, and he personally believes that bonds are the worst investment of any asset.
Prigo, 66, who runs TVAzteca, Mexico’s second-largest television broadcaster, and retailer GrupoElektra, has a net worth of $12 billion, according to Forbes. The US dollar ranks 156th in the list of the world’s richest people.
Mining machine prices are also at an all-time low right now, which is a good buying opportunity for long-term investors.
Post time: Jul-30-2022