Galaxy Digital founder and CEO Mike Novogratz is still optimistic that Bitcoin (BTC) will hit a price of half a million dollars. When asked on Bloomberg if BTC can hit $500,000 over the next first years, Novogratz answered, “I do, I do.” According to Novogratz, there are institutional investors who now view Bitcoin as an […]
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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 […]
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Galaxy Digital founder and CEO Mike Novogratz is optimistic Bitcoin (BTC) will lead the markets to recovery once a key policy decision is reversed. Novogratz says in a CNBC interview that once the Federal Reserve pauses or reverses the interest rate hikes, the flagship crypto asset will spearhead a market-wide rally. “Bitcoin will lead the […]
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Some high-profile investors have taken the recent market downturn as an opportunity to add to their crypto positions, though others warn there’s still a risk of worse to come.
Some of the highest-profile investors in crypto believe that a crypto market bottom is fast approaching — although one still warns of catastrophic outcomes should prices fall below established support levels.
Billionaire Mike Novogratz, the founder, chairman and CEO of digital asset merchant bank Galaxy Digital Holdings told a Morgan Stanley conference on June 13 that cryptocurrencies may be close to a bottom, with Ethereum (ETH) likely to hold at $1,000 and Bitcoin (BTC) at around $20,000 to $21,000.
The bottom for crypto would be realized faster than that of U.S. stocks, which could fall a further 15% to 20% he said.
“Ethereum should hold around $1,000 and it’s $1,200 right now. Bitcoin is around $20,000, $21,000 and it is $23,000, so you are much closer to the bottom in crypto than you are where I think, stocks, are going to have another 15% to 20% decline.”
Arthur Hayes, co-founder and former chief of BitMEX took a similar view, acknowledging on Twitter on June 13 that on-chain data for Wrapped Bitcoin (wBTC) and Ether indicated that “liquidations have mostly happened.”
However, Hayes warned that should support levels break for BTC and ETH at $20,000 and $1,000 respectively, we could expect “massive sell pressure in spot markets.”
4/
— Arthur Hayes (@CryptoHayes) June 14, 2022
If these levels break, $20k $BTC & $1k $ETH, we can expect massive sell pressure in the spot markets as dealers hedge themselves. We can also expect that there will be some otc dealers and that will be unable to hedge properly and might go belly up.
Macro investor Raoul Pal has taken the recent market downturn as an opportunity to add to his crypto positions. On June 14, Pal told his 956,000 Twitter followers that “we are in a buy zone” for Bitcoin (BTC), adding he was getting ready to “significantly” add to his crypto positions “probably starting next week and into July.”
The former Goldman Sachs executive explained that the imminent Bitcoin bottom can also be signaled by the weekly Relative Strength Index (RSI), which is at 31, edging closer to its lowest ever at 28.
With the weekly RSI at 31 and the lowest ever at 28, that too suggests the low is within striking distance. Don't ever expect to nail the low however...
— Raoul Pal (@RaoulGMI) June 14, 2022
DeMark weekly charts suggest low is next week or in next 5 weeks. pic.twitter.com/rwtfFxjYzH
RSI is a metric used by investors to measure the speed and magnitude of price changes, which can indicate overbought or oversold conditions. According to Investopedia, an RSI reading of 30 or below indicates an oversold and undervalued condition.
Pal said his framework frequently expects 60% draw ds over the long-term time horizons, adding:
“In fact, the best way to optimize returns is to add significantly when the market tests the key trend.”
Anthony Scaramucci, founder of Skybridge Capital told CNBC’s Squawk Box on June 13 that investors should “stay disciplined” amidst the crypto slump, noting that his fund has continued adding Bitcoin and Ethereum into its portfolio.
“With incremental cash coming into our fund we have bought more Bitcoin and Ethereum […] So yes, truth be told, people will look back on this debacle and say I wish I had fresh cash to buy into that.”
Related: 'Too early' to say Bitcoin price has reclaimed key bear market support — Analysis
Novogratz was less gung-ho about investing right now, taking a more conservative approach and telling attendees that it may not yet be time to “deploy lots of capital” as the economy may have further to fall.
“Until I see the Fed flinch, until I really think, OK the economy is so bad, and the Fed is going to have to stop hiking and even think about cutting, I don’t think it is time to really deploy lots of capital.”
Other metrics that could shed light on whether crypto is nearing its market bottom is the Fear and Greed Index which as of today is currently sitting at 8, under “Extreme Fear”, which was last seen on May 17, around the time of Terra (LUNA)’s collapse.
Bitcoin Fear and Greed Index is 8. Extreme Fear
— Bitcoin Fear and Greed Index (@BitcoinFear) June 14, 2022
Current price: $21,598 pic.twitter.com/lsbousUzeV
Bitcoin is currently priced at $22,061 and ETH is at $1,215 at the time of writing.
The chief executive of crypto asset management company Galaxy Digital, Mike Novogratz, thinks the majority of crypto hedge funds could be headed toward dark days in the future. Novogratz outlined his opinions while speaking at Piper Sandler Global Exchange & Brokerage Conference on Wednesday, predicting that two-thirds of the roughly 1900 crypto hedge funds in […]
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Miller said Bitcoin “functioned without the Fed and without any interference” during times of market turmoil, concluding that “it’s an insurance policy, the way I look at it.”
Bill Miller the billionaire founder and Chief Investment Officer of investment firm Miller Value Partners, has said he considers Bitcoin (BTC) an “insurance policy against financial catastrophe.”
Appearing on an episode of the “Richer, Wiser, Happier” podcast on May 24 Miller backed the cryptocurrency as a means for those caught in conflict to still access financial products. He used the collapse of financial infrastructure in Afghanistan after the US withdrawal in August 2021 as an example.
“When the US pulled out of Afghanistan, Western Union stopped sending remittances there or taking them from Afghanistan, but if you had Bitcoin, you were fine. Your Bitcoin is there. You can send it to anybody in the world if you have a phone.”
Miller said examples of how the crypto can function as insurance don’t “have to be all or nothing” and noted how Bitcoin performed during the early stages of the pandemic and the Federal Reserve’s reaction to it.
“When the Fed stepped in and started gunning the money supply and bailing out, in essence, the mortgage rates […] Bitcoin functioned fine. There was no run on Bitcoin. The system functioned without the Fed and without any interference. Everybody got their Bitcoin, the price adjusted, and then when the Bitcoiners realized, ‘Wait, we’re going to have inflation down the road,’ Bitcoin went through the roof.”
“It’s an insurance policy, the way I look at it,” he added.
Miller also rebuked Warren Buffett’s recent criticism of Bitcoin where the billionaire investor famously remarked that “it doesn’t produce anything” and he “wouldn’t take” all the Bitcoin in the world for even $25.
"He's said that Bitcoin is a non-productive asset and therefore he can't value it. Fair enough. If the only thing that you think you can value are productive assets, then no one's making you buy it, right? So ignore it.”
He later followed up his comment, adding “the objective of investing is not to own productive assets, the objective is to make money”.
Related: Scott Minerd says Bitcoin price will drop to $8K, but technical analysis says otherwise
Miller is famous for managing a portfolio which for 15 consecutive years between 1991 and 2005 consistently beat the returns of the S&P 500 index. He’s also known for his advocacy of Bitcoin and put half of his net worth into the asset in January.
When asked if he still held that position Miller confirmed that about “40% to 50%” of his money was in Amazon stock and his Bitcoin holdings were “about the same as Amazon”, adding that 80% of his net worth is split between the two assets.
Miller also discussed the Luna-based tattoo on the arm of Mike Novogratz, the founder of crypto asset management firm Galaxy Digital after the collapse of the Terra ecosystem:
“Somebody had sent me a picture of Mike Novogratz where he got a Luna tattoo on his arm months ago of the wolf howling at the moon, and it’s big. It’s like, whoops, maybe you should have got a Bitcoin on your arm, it’d be a little more enduring than that one.”
Novogratz has said that the tattoo will be a “constant reminder that venture investing requires humility” as Galaxy Digital posted a $300 million loss on its Luna investments.
“I felt bad for him when I saw some story of him going from something like $10 billion to $2 billion,” Miller said, “I’m like, yeah, that’s really tragic”.
This week, both Goldman Sachs’ Lloyd Blankfein and Tesla boss Elon Musk weighed in on the issue of an impending recession in the U.S., issuing sobering estimations. In the wake of Terra’s epic implosion, the topic is all the more critical, but LUNA-tattooed Galaxy Digital CEO Mike Novogratz still thinks the “crypto revolution is here […]
“Not going away” — Mike Novogratz says that despite being permanently humbled by the recent Terra collapse, the crypto industry will continue to grow.
Mike Novogratz, the billionaire founder of crypto asset management firm Galaxy Digital, has told his followers that his LUNA-inspired tattoo will serve as a reminder to remain humble in the world of venture capital investing.
Following the fallout of the recent LUNA / UST meltdown, Novogratz penned an open letter on Wednesday, telling his followers that: “My tattoo will be a constant reminder that venture investing requires humility.”
It was on Jan. 5 tha Novogratz first showed off his wolf-themed tattoo to his 461,000 Twitter followers in an enthusiastic demonstration of his support for the now-collapsed Terra ecosystem.
— Mike Novogratz (@novogratz) January 5, 2022
Terra’s UST stablecoin, which relied on an algorithm to maintain a peg to the U.S. dollar, collapsed last week, sending the price of its sister-token LUNA from $60 per token to $0 in less than 72 hours. The collapse wiped approximately $40 billion dollars from the cryptocurrency ecosystem.
“The collapse dented confidence in crypto and DeFi,” said Novogratz in the letter, “whenever money is lost in such an abrupt fashion, people want answers.”
He said that despite last week’s “heart-wrenching” market pandemonium, the crypto industry looks stronger than ever and wouldn’t be going away any time soon.
“This does not mean the crypto market will bottom and head straight back up. It will take restructuring, a redemption cycle, consolidation and renewed confidence in crypto.”
He explained that Galaxy Digital invested in LUNA in Q4 2020 using balance sheet capital, and clarified that the firm’s treasury never used UST.
“Our team’s initial thesis for investing in LUNA was centered around the expansion of blockchain-native payments systems.”
According to an update from Galaxy Digital released on May 13, the firm expects to post a $300 million loss in net comprehensive income as of May 11, bringing the partners’ capital to $2.2 billion — a 12% decline from March 31.
Pantera Capital, one of the original investors in Terraform Labs, revealed today that it had cashed out roughly 80% of its LUNA investment well before the TerraUSD collapse. According to Pantera partner Paul Veradittakit, the firm managed to turn $1.7 million into approximately $170 million.
We managed that position down over time as it became increasingly profitable/large, in order to maintain a diversified portfolio. We initially invested in LUNA because of the progress we saw in developer adoption, the payments usage, and the broader ecosystem being built on Terra
— Joey Krug (@joeykrug) May 18, 2022
It’s not just Novogratz getting inked — crypto-themed tattoos have grown substantially in popularity with crypto tattoo-related Google searches surging by 222% in 2021. According to data from Crypto Head, more than 900 people worldwide have inked themselves with the Bitcoin (BTC) “B” while Dogecoin (DOGE) and Ethereum (ETH) tattoos are on the rise.
On May 18, the billionaire investor and crypto proponent Mike Novogratz published a post about the recent Terra blockchain fallout. Novogratz and his firm Galaxy Digital were big believers in the Terra project, and the investor even got a LUNA-centric tattoo on his arm. Despite the recent events and losses, the crypto economy felt this […]
Crypto asset manager Galaxy Digital has taken a deep hit following the significant downturn in digital asset markets. According to a recent press release, the firm is reporting that is on track to lose $300 million for the second quarter of 2022. The firm is also hinting that it has no exposure at all to […]
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