“On the $ 38,000 and $ 40,000 charts it feels like the place where we should hit rock bottom.”he told the US news network CNBC. Novogratz is the CEO of cryptocurrency investment management company Galaxy Digital. According to his analysis, the latest falls in the price are due to the fact that there were “a huge amount of institutional demand on the sidelines.”
“I know large institutions that are going through their process to place positions, and I think they will see them as attractive levels to buy”, said Novogratz, a Wall Street veteran, who jumped headfirst into bitcoin and cryptocurrencies in 2017 after traversing stints at Fortress and Goldman Sachs.
Forbes recalled that Wall Street giants and institutional investors entered the cryptocurrency markets starting in 2020. Since then, the price of bitcoin has risen by around 400% and smaller cryptocurrencies like Ethereum and Solana have posted even bigger gains.
However, the price of bitcoin has fallen by around 10% since early 2022, hitting $ 40,000 from highs of nearly $ 70,000 at the end of last year. Meanwhile, other cryptocurrencies such as Ethereum, BNB, Solana, Cardano y XRP Binance’s also tumbled, losing double-digit percentages last week.
Despite its current low price, Wall Street gurus are forecasting a promising future for bitcoin. Goldman Sachs estimated that bitcoin will increasingly compete with gold as a “store of value” and “It could reach $ 100,000 in five years.”
“Bitcoin can have different uses and applications, beyond being a simple ‘store of value’, and the markets for digital assets are much larger than bitcoin; but we believe that comparing its market capitalization with gold can help to establish parameters in plausible results for bitcoin returns “, He said Zach Pandl, Co-Head of Currency Strategy at Goldman Sachs.
Source From: Ambito
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