The former hedge fund manager predicted last month that Bitcoin could hold up at $ 42,000.
Financier and crypto investor Mike Novogratz recently told CNBC that he expects Bitcoin to fall even further to a floor price of around $ 40,000, or $ 38,000. Bloomberg reported the change of heart of the crypto bull, who recently suggested that Bitcoin could hold out at $ 42,000.
Novogratz delved into the forecast and stated that he would withhold the purchase of cryptocurrencies. The head of Galaxy Investment added that there is a significant amount of institutional money poised to rush for the opportunity to get into the space.
"(There's) tremendous institutional demand on the sidelines," he said.
He insisted that he was not tight on the medium-term performance of cryptocurrencies, although the next few weeks will be quite volatile.
Federal Reserve meeting
The world's largest crypto asset, currently hovering around the all-important $ 41,900 mark, has seen a significant decline in the past few days. Experts attributed the decline last week to uncertainty caused by the minutes of a meeting of the US Federal Reserve in December, which pointed to a rate hike.
The minutes released last Wednesday showed that the central bank had indicated, with reference to the strengthening economy, inflation and the labor market, that it could embark on a much faster path to hike interest rates and reduce monetary policy measures than expected. Some Fed members felt it was necessary to cut some of their $ 8.8 trillion balance sheet.
Bitcoin has been very volatile in the past few months, and as a result, a bearish aftertaste has developed on investors' tongues. Some crypto analysts attribute the slump to recent protests in Kazakhstan, a major Bitcoin mining pool. Analysts believe the riots caused the network's hash rate to plummet as the country suffered repeated internet shutdowns that took up to 15% of the Bitcoin network offline.
The Fear and Greed Index
On Saturday, Bitcoin's Fear and Greed Index hit a multi-month low of 10, shortly after Bitcoin's price fell to around $ 40,500. It's been over six months since your CFGI dropped that low. At the time of this writing, the value is now 23.
The leading cryptocurrency is currently trading at $ 41,941 – a drop of nearly 39% from its all-time high, according to market data . The price means that Bitcoin has lost 11% in the past seven days. Its global trade volume is down 23.90% in the past 24 hours to $ 21.1 billion.