- Mike Novogratz provided important geopolitical information on the cryptosphere
- Galaxy Digital CEO Sees U.S. Crypto Community Strengthens As Asian Community Takes Down
- Asia’s biggest market tumbles, cryptosphere experiences good selloff
- The billionaire investor noted that when Asians sell their holdings, the United States buys
Mike Novogratz is a billion dollar investor who is also a prominent supporter of cryptocurrency and blockchain. We also know that Mike has invested in several blockchain startups. Recently, the billionaire investor had an interview with CNBC’s Squawk Box. In the interview, the billionaire noted that the price of BTC had stabilized between $ 30,000 and $ 35,000. Following the price scenario, he said the US crypto community appears to overtake the Asian community. Notably, a negative trend was observed in the Asian region.
Mike Novogratz provided geopolitical information
Amid the global COVID-19 pandemic, Bitcoin has seen significant bullish growth. Since the start of this year, the entire crypto market has attracted several investors thanks to price spikes. However, as the demand for digital currencies increased, financial regulators around the world began to monitor the market.
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Due to strict regulations, Bitcoin, the main cryptocurrency, lost more than 50% of its value in mid-May. Such a drop in the price level also had an impact on the entire altcoin market.
In the current scenario, the flagship cryptocurrency is trading sideways after such a turbulent period. Following the price movements and the scenario, Mike Novogratz, CEO of Galaxy Digital, provided some geopolitical information on the industry.
What information did the billionaire provide?
Mike Novogratz noted that China’s regulatory review and ban on crypto companies is part of a bigger concern in the market. Indeed, the scenario shows that when Asia started to sell, the United States started to buy.
Due to the ban on crypto activities, Chinese miners plan to divide their activities. For this reason, miners sell their earned coins. On the other hand, American companies like Microstrategy buy the coins of these miners over the counter.
Some whales sell off part of their wallets
Novogratz mentioned in the interview a possible link between the ownership of BTC in various wallets. And implied that few whales had to sell part of their digital wallet.
According to Mike Novogratz, if an investor is a hedge fund, they can get pummeled by their rates, stocks and oil positions. Notably, in such a scenario, the hedge fund manager will also have to sell some of their cryptocurrencies. However, it will just take some time to build a more diverse investor base.
However, recent performance due to regulatory factors and celebrity talk has shown some interesting things about the nascent monetary system. China’s destructive act had created retail deleveraging. However, the cryptosphere is witnessing a greater liquidation. Therefore, the market may still have difficulty dipping to call a bottom.