Bitcoin billionaire Mike Novogratz says sinking cryptocurrencies will struggle to recover until stocks bottom


The crypto billionaire said Thursday that it was a bear market and told people to sell rallies and not buy dips. Mike Novogratz said cryptocurrencies will have a hard time pulling back from their sell-off if stocks continue to fall.

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Crypto selling intensified on Friday, as bitcoin fell 10% to a six-month low below $38,000.

Billionaire investor Mike Novogratz said cryptocurrencies would struggle to pull back from their sell-off if stocks continued to slide as he urged investors not to buy the dip.

Prices for bitcoin, ether and other digital currencies have fallen sharply across the board as they follow Wall Street’s rout in tech stocks, under pressure from rising bond yields.

“Crypto will struggle to rally until stocks find a base,” Novogratz, CEO of investment firm Galaxy Digital, tweeted Thursday evening.

Novogratz pointed to the sharp drop in the Russell Index, which is down nearly 10% year-to-date, saying there are 1.2 trillion bad long stocks above the market.

Investors have dumped crypto assets and tech stocks this year as they brace for the Federal Reserve to raise interest rates at least four times in 2022. This has pushed bond yields higher as the prospect of higher interest rates encourage investors to seek a similar return. .

“Now is a bear market,” he said, adding, “Sell rallies. Don’t buy dips.

Novogratz warned on Tuesday that as long as rates rise, there will be pressure on crypto assets and the Nasdaq. The tech-heavy stock index has fallen more than 9% in the past month.

Bitcoin, the leading cryptocurrency, has fallen 20% in the past month to trade well below its November all-time high of over $68,000. Ethereum’s ether is down 30%, also above its all-time high of around $4,800.

Novogratz suggested in his Thursday tweets that there could be a silver lining for the markets. “That said, the crypto has already had a decent selloff and is running into some buying support,” he said.

The story continues

On Friday, however, the broad crypto slide was gaining momentum. Bitcoin is down 9% in the past 24 hours to $38,274, according to the latest CoinMarketCap data check. It had previously crossed the $38,000 mark to hit $37,704, its lowest level in six months. Meanwhile, Ether was down 12% at $2,795.

Novogratz told CNBC earlier this year that the crypto could drop as low as $38,000, and he was waiting for that before buying more. The crypto enthusiast, who has tattoos inspired by different coins, said in May last year that crypto made up 85% of his net worth.

Read the original article on Business Insider

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