Mike Novogratz, billionaire and cryptocurrency fan, warned investors about the volatility of the cryptocurrency market in a recent interview. Overall and in the long term, Novogratz is optimistic about bitcoin and companies like Coinbase.
Novogratz warns of a "breakdown" of the crypto market
The shares of Coinbase Global, Inc. (Nasdaq shares: COIN) are currently down 5% since opening on day one. During the launch, billionaire Mike Novogratz talked about the San Francisco company and the crypto economy in general. Novogratz has long been a supporter of bitcoin and other digital assets such as ETH. Just recently, the crypto investment firm he founded, Galaxy Digital, applied to the US SEC to list an exchange-traded bitcoin fund.
Speaking positively about the launch of COIN on Wednesday, Novogratz said the enthusiasm would cause some volatility in the cryptocurrency market. “In the coming week, we certainly could have some volatility due to the excitement around Coinbase,” the former Fortress executive said.
His statements were directed at XRP and dogecoin when he said, “I've seen a lot of weird coins like dogecoin and even XRP having huge retail spikes, which means there's a lot of frenzy right now. It never ends well, so we'll probably have a so-called washout at some point. "
Novogratz considers Coinbase's IPO "monumental" and sees Bitcoin prices at $ 70 by the end of May
Both dogecoin (DOGE) and XRP have recorded colossal gains over the past seven days. Delta Exchange CEO Pankaj Balani indicates that his near-term outlook after the COIN listing is far more optimistic than Novogratz's view.
"Coinbase opened just under $ 100 billion, but failed to sustain early gains and closed about 15% below its opening price," Balani said. "There have been some concerns about the company's valuation given the volatility of its earnings, but the fact remains that it has the largest market share among regulated centralized exchanges in the United States and its business is close to a monopoly. at this point, ”added the CEO of the cryptocurrency exchange.
Balani of Delta Exchange believes that by the end of May there is a 40% chance that bitcoin prices could hit $ 70 per unit.
“The upcoming trading sessions will decide how new investors look at the stock and the sector,” noted Balani. “Cryptocurrency investors are also closely monitoring the price of the coin as it becomes a proxy for the interest of traditional investors in the crypto space. We have seen Bitcoin correct in the wake of the tepid COIN price, but it has maintained its monthly gains and crucial levels of $ 61.000. Sentiment continues to remain strong with the options market currently colliding with a 40% chance of BTC reaching $ 70.000 by the end of May, ”Balani concluded.
