Galaxy Digital CEO Reportedly Warns Bitcoin May Eventually Face Pullback, Flags 'Giant Seller' Dumping Crypto Last Week
By Stocktwits Inc | First Published Nov 21, 2024, 9:28 PM ISTThe crypto community is levered to the gills, and so there will be a correction, Novogratz said on CNBC’s Squawk Box.
Galaxy Digital CEO Michael Novogratz reportedly said that although Bitcoin ($BTC.X) is likely to hit the six-figure mark of $100,000 and witness some rally from those levels, a pull-back can be expected eventually.
“There’s a ton of leverage in the system right now. ... The crypto community is levered to the gills, and so there will be a correction,” Novogratz said on CNBC’s Squawk Box.
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But the crypto investor does not expect the asset to fall below the $80,000 mark — a level seen prior to the election which witnessed Donald Trump emerge victorious.
Novogratz is of the view that the correction will be more profound in crypto-linked stocks like MicroStrategy Inc ($MSTR). “I personally would tell my investors to buy straight bitcoin” instead of plays like Microstrategy, he said, according to the CNBC report.
Indeed, MSTR shares have surged over 590% since the beginning of the year compared to Bitcoin’s gains of over 118% during the period.
Interestingly, retail investors on Stocktwits appear to be in sync with Novogratz’s view with the sentiment meter dipping into the ‘extremely bearish’ territory (8/100), hitting a one-year low.
Since Trump’s victory in the US Presidential elections, Bitcoin has rallied significantly and crossed the $98,000 mark for the first time on Thursday.
According to recent reports, the Trump administration is even considering a new White House role dedicated to cryptocurrency policy.
However, Novogratz warns that a mysterious seller has been dumping the crypto asset in recent days. “There had been a giant seller for the last week, between 92, 93 and 94. Probably $14-15 billion of bitcoin sold there,” Novogratz said.
Nevertheless, retail investors on Stocktwits are still bullish on Bitcoin.
Meanwhile, retail chatter indicates mixed opinion on the asset’s performance near the $100,000 mark.
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