‘Weird Coins Like DOGE and XRP Spike’- Galaxy Digital’s Mike Novogratz Warns of a Crypto Market ‘Washout’ – Markets and Prices Bitcoin News
Billionaire bitcoin storm investor Mike Novogratz warned of the volatility of the cryptocurrency market in a recent interview with Barron’s and Marketwatch’s Virtual Crypto Investing event series. Overall and in the long term, Novogratz is optimistic that bitcoin and companies like Coinbase will continue to thrive.
Novogratz warns of cryptocurrency market erosion
The shares of Coinbase Global, Inc. (Nasdaq: COIN) is currently down 5% from yesterday’s opening price, and at the launch billionaire Mike Novogratz spoke about the San Francisco-based company and the crypto economy in general. Novogratz has long supported bitcoin (BTC) and other digital assets such as Ethereum (ETH). Recently, Galaxy Digital, the cryptocurrency investment firm he founded, applied to the US Securities and Exchange Commission (SEC) to become a bitcoin exchange traded fund.
Although he was positive about the launch of COIN on Wednesday, Novogratz said the excitement will cause some volatility in the cryptocurrency market. We could definitely see some volatility in the coming week due to the furor over Coinbase, the former Fortress executive said in an interview with Marketwatch. Despite his recent statements on CNBC and claims that he is optimistic [about] the crypto economy, Novogratz is predicting a shakeout.
His statements were focused on XRP and dogecoin when he said:
I’ve seen a lot of foreign coins like dogecoin and even XRP with huge sales spikes, which means a lot of craziness right now. It never ends well, so we will probably have a failure at some point.
Novogratz estimates that the IPO of Monumental, a cryptocurrency exchange, offers a 40 percent chance that the price of bitcoin will reach $70,000 by the end of May,.
Both Dogecoin (DOGE) and XRP have seen significant gains over the past seven days. At the time of writing, the seven-day stats for XRP this week are +64.61% and +114.15% for Dogecoin. As for COIN’s launch events, Coinbase’s IPO was monumental for the industry, Novogratz said.
Pankaj Balani, CEO of Delta Exchange, points out that his short-term outlook after COIN’s listing is much more optimistic than Novogratz’s.
Coinbase opened just below the 100BN valuation threshold, but failed to maintain initial gains, closing about 15% below its opening price, Balani said. The company’s valuation has raised some concerns given its earnings volatility, but that doesn’t take away from the fact that it has the largest market share among regulated centralized exchanges, in the US, and its operations are currently close to monopoly, the crypto derivatives exchange’s CEO added.
Balani of Delta Exchange estimates that there is a 40 percent chance that the price of bitcoin (BTC) will reach the $70,000 mark by the end of May.
The next few trading days will determine how new investors view the stock and the sector, Balani said. Crypto-currency investors are also closely monitoring the price of COIN, as it is an indicator of traditional investors’ interest in the crypto space. We saw bitcoin correct itself after a tepid COIN quote, but it retained its monthly gains and the crucial $61,000 level. Sentiment remains strong as the options market currently has a 40% chance that BTC will reach $70,000 by the end of May, Balani concludes.
What do you think about investor and billionaire Mike Novogratz’s opinion on the erosion of the cryptocurrency market? Let us know what you think of his opinion in the comments below.