Mike Novogratz Is Not Worried With Crypto Market In Good Shape

Galaxy Digital Chief Executive and billionaire investor, Mike Novogratz went to Twitter and commented on the crypto market following China’s latest crackdown on crypto. He believes there is no reason for concern, with the Bitcoin market being in good shape considering there is “so much capital coming into the space”. He also noted China becoming less of a factor in the crypto world.

According to the CEO, the crypto market recently lost some of its gains for three reasons combined. However, he expects Bitcoin will consolidate.

Firstly, it is down to China intensifying its witch hunt on crypto. A second reason, Novogratz points out is the U.S. Federal Reserve “putting taper in motion.” As a third explanation he refers to big overhead resistance levels for Bitcoin and Ethereum.

The market is down for three reasons: China reiterating their anti-crypto, anti-freedom stance; US Fed putting taper in motion; running into big overhead resistance on chart at 45k, 3200. The secular story is as strong as ever but a price consolidation is going to continue.

— Mike Novogratz (@novogratz) September 24, 2021

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In an interview with CNBC’s Squawk Box in the beginning of last week, the billionaire investor had already said that the Bitcoin market is in good shape and referred to the high influx of new capital saying.

“We see so much capital coming into the space, in private ways and public ways. I am not nervous.”

He added that Bitcoin’s $40,000 price level is “very important for people to watch”.

“As long as those hold, I think the market is in good shape.”

While acknowledging the large trading activity coming from China in the past, Novogratz downplayed China’s influence on the current crypto space. He said:

“China was never a big source of innovation in the space but it was a big source of trading and I think there’s still plenty of trading in China … The Chinese are smart, they know how to use VPNs, but it’s harder and harder and so I think it’s less and less important.”

The country’s latest crackdown may not have been that impactful as their previous go at it a few months ago when miners left the country, Novogratz said.

“It was a lot more important five months ago before China basically said we’re banning crypto so miners have moved out of China.”

He then retweeted a comment made by senator Pat Toomey, who sees the potential for the U.S. to move to the forefront.