Mike Novogratz, CEO of Galaxy Digital, expressed confidence in the crypto markets. For him, China and its anti-crypto will, the policies of the US Federal Bank and the current too high resistance levels of Bitcoin and Ethereum explain the current situation.
The crypto markets have been declining in recent days. If the media prism has focused on China, this is not the only reason. Find out the three reasons behind the decline in Bitcoin and other cryptos.
For billionaire Mike Novogratz, the crypto market is in “good shape”!
Mike Novogratz is a well-known and respected figure in the crypto world. CEO of Galaxy Digital, he is a supporter of cryptos and Bitcoin. Recently, he gave an interview on CNBC channel about the crypto market. He returned in particular to the reasons for the drop in crypto prices.
Mike Novogratz gives three reasons. In the first place, obviously we find China and its coercive crypto policy. But for him, this is not the only reason! Thus, he puts forward a second reason with the policy of the Federal Bank of the United States. Indeed, she plans to soon stop the help given during the COVID-19 crisis.
Finally, the third reason for him comes from resistance level currently too high for the two queen cryptos: Bitcoin and Ethereum. Indeed, Bitcoin is facing strong resistance around $ 45,000. His course tried unsuccessfully to cross it on September 24. Similarly, Ethereum has been trying for a few days to cross the level of $ 3,200. On September 23 and 26, the price of ETH approached but failed to overcome this level.
“I haven’t seen anything other than the engagement activity of our investor clients and our corporate clients. (…) We see so much capital entering space, both privately and publicly. I am not nervous. »Mike Novogratz, CEO of Galaxy Capital
These reasons explain the current market situation. They also show that the market can quickly get out of this situation. This is also why Mike Novogratz felt that the crypto market remained in “good shape”.
The crypto market less and less dependent on China
Another positive aspect according to him is the decrease in Chinese influence on crypto prices. This helps to decentralize this market even further. With the anti-crypto policies put in place by China, crypto activity has declined in the country. For example, mining is in the process of relocation to the United States in particular. Recently, we learned that the Chinese firewall was preventing connections to recognized crypto sites like Coinmarketcap, Coingecko, Tradingview.
“China has never been a great source of innovation in space but it was a great source of trade and I think there is still a lot of trade in China… The Chinese are smart, they know how to use VPNs, but it’s getting harder and harder and so I think it’s [l’influence chinoise sur les cryptos] less and less important. “
