Michael Novogratz Believes Bitcoin and Crypto Markets Have Touched the Bottom of the Bear Market
Hedge fund manager-turned crypto evangelist Michael Novogratz has a bold prediction for the industry: Novogratz just called the bottom.
Crypto markets have been in a bear slide since the beginning of this year. This past week, headlines got particularly ugly, with analysts claiming the burst of the crypto bubble is now officially worse than the burst of the Dot Com bubble in terms of value lost.
“I think we put in a low yesterday. retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble…markets like to retrace to the breakout…we retraced the whole of the bubble. #callingabottom”
Novogratz accompanied the tweet with a picture of the Bloomberg Galaxy Crypto Index (BGCI) chart. The chart shows that the crypto markets are now at the point they were last year just before the record bull market rise to end the year. Today, crypto markets are at about the same place they were in mid November 2017.
Novogratz’s prediction quickly generated attention across the crypto community. It’s been retweeted over 400 times and liked over 1100 times.
The Bloomberg Galaxy Crypto Index measures the performance of the largest digital currencies traded in dollars. That chart just reached the point where we were last year prior to the big rally.
Michael Novogratz is a billionaire investor and Wall Street veteran who previously worked for Goldman Sachs. The hedge fund manager-turned crypto evangelist clearly believes in the long-term potential of cryptocurrency. In November 2017, he predicted that Ethereum could reach $1500 by the end of 2018 and that bitcoin could touch $40,000.
It’s been a tough year for crypto markets, to say the least. Some altcoins have lost 95% of their value since January 2018. Even the biggest names – like Bitcoin Cash, Ethereum, and Ripple – have lost 70 to 80% of their value. Bitcoin has dropped 51% in 2018, for example, while Ethereum has lost 73% and Bitcoin Cash has lost 82%.
Crypto has continued to get hit by bad news throughout the year, with several high-profile bitcoin ETF denials from the SEC dominating headlines over the summer. The negative news has drowned out some genuinely positive news from the crypto space – like the launch of Bakkt, for example, or the growing Wall Street support of crypto trading from firms like Goldman Sachs.
Novogratz’s bottom call might turn out to be accurate: Ethereum jumped over 20% today after flirting with $180 yesterday. Bitcoin is up 2% over the last 24 hours, with other cryptocurrencies experiencing similar jumps between 2% and 15%.
We’ll have to wait and see if this is truly the bottom of the crypto market – or if we still have room to slide.