Bitcoin bull and billionaire investor Mike Novogratz warned about the volatility of the cryptocurrency in a recent interview stemming from Barron and Marketwatch’s series “Investing in Crypto” for virtual events. Overall, in the long run, Novogratz is positive about bitcoin and companies like Coinbase remain prosperous.
Novogratz warns of a ‘washout’ of the Crypto market
Shares in Coinbase Global, Inc. (Nasdaq: COIN) is currently 5% lower since opening yesterday and during the launch, billionaire Mike Novogratz spoke about the San Francisco firm and the crypto-economy in general. Novogratz has also been a longtime supporter of bitcoin (BTC) and other digital assets such as ethereum (ETH). Recently, the crypto-investment firm he founded, Galaxy Digital filed an application with the U.S. Securities and Exchange Commission (SEC) to list a stock exchange-traded fund.
While speaking positively about the COIN launch on Wednesday, Novogratz said the excitement would cause some volatility in the crypto market. “In the next week, we can definitely be volatile due to the excitement surrounding Coinbase,” the former Fortress CEO said during his interview with Marketwatch. Despite his recent statements on CNBC and say he “feels at odds [about] the crypto-economy, ”Novogratz said.
His statements were aimed at XRP and dogecoin when he said:
I have seen many strange coins like dogecoin and even XRP, have large retail spikes, which means there is a lot of madness right now. It never ends well, and so we’ll probably have a rinse aid at some point.
Novogratz considers Coinbase IPO ‘monumental,’ Crypto Exchange Exec sees 40% chance of $ 70,000 Bitcoin prices by end-May
Both dogecoin (DOGE) and XRP have experienced huge gains over the past seven days. At the time of writing, the seven-day stats for XRP stand at + 64.61% and dogecoin gained + 114.15% this week. As for the shares of COIN launch, the Coinbase exchange was ‘monumental’ to the Novogratz industry.
Pankaj Balani, CEO of Delta Exchange, indicates that his short-term outlook for the COIN listing is much more optimistic than Novogratz thinks.
“Coinbase opened just below the 100BN valuation point, but it could not make the initial profit and closed about 15% lower than the open price,” Balani said. ‘There has been concern about the valuation of the company, given the volatility in its earnings, but that does not take away from the fact that it has the largest market share among regulated centralized exchanges in the US, and that its business is close to a monopoly, at this stage, ‘added the CEO of the crypto-derivatives.
Balani of Delta Exchange believes that by the end of May there is a 40% chance that bitcoin (BTC) prices could utilize $ 70,000 per unit.
“The next few sessions will decide how new investors look at the stock and the sector,” Balani noted. ‘Crypto investors are also keeping a close eye on the COIN price as it becomes a proxy for traditional investors’ interest in the crypto space. We saw Bitcoin right following the lukewarm listing of COIN, but it retained its monthly gains and key $ 61,000 levels. Sentiment remains strong with the options market currently pricing a 40% chance that BTC could reach $ 70,000 by the end of May, ‘Balani concluded.
What do you think of the opinion of bitcoin bull and billionaire investor Mike Novogratz about an eradication of the crypto market? Let us know what you think of his opinion in the comments below.
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