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There is ‘more pain’ for Bitcoin ahead, says billionaire ex-hedge fund manager

There is 'more pain' for Bitcoin ahead, says billionaire ex-hedge fund manager

Mike Novogratz, a well-known American investor and the current CEO of Galaxy Investment Partners, has predicted that cryptocurrencies will continue to be associated with the Nasdaq in the meantime.

In an interview with CNBC’s Squawk Box, Novogratz expressed his thoughts on the present situation of the cryptocurrency sector, which is now experiencing a bearish sentiment in the market. When asked what he thinks would happen to Bitcoin in the future, the investor said that cryptocurrency would continue to be associated with the Nasdaq stock market index. 

Examining where Bitcoin will be three to four years from now, and determining if this might be one of the greatest purchasing chances of all time, or whether it is better to hang onto cash since the buying opportunity is still a few years away.

“Crypto is very correlated to the Nasdaq my opinion is that over time that correlation will break down. We’ve already seen the beta of the breakdown. The Nasdaq falls 3%, crypto falls 9%. But I do think there’s more pain to come.”

He added:

“With the Nasaq we could be at 12,000 and then it will bounce and then in a couple of weeks we could be at 10,500.”

Major news is needed to impact the crypto market

What distinguishes the current situation from that of Covid is that there is no large infusion of cash to spur the v-shaped rebound. In the meantime, he noted: “we’re going to grind until there’s a new story that shows up, and then we’re going to take back off again.”

“My instinct is there’s more damage to be done,’ said the CEO of Galaxy which focuses on investments in the cryptocurrency space

Elsewhere, Michael Santoli said:

“The people who own Bitcoin also own tech also own disruption. And what you own, next to who else owns it and what they own, that’s what matters right now to the markets and financial stress.” 

As things stand, Bitcoin is currently trading at $32,810, down 4.84% in the last 24 hours and a further 15.94% across the previous week, according to CoinMarketCap.

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