The price of bitcoin and many cryptocurrencies may have seen double-digit percentage drops in the past 24 hours, but some cryptocurrency experts still seem cautiously optimistic about the market as a whole.
In an interview with CNBC’s Squawk Box on Wednesday, Galaxy Digital founder Mike Novogratz said the cryptocurrency market “needs some time” to consolidate and find a bottom as the price of bitcoin fell to $30,000 earlier in the day. At the time of Novogratz’s comments, the crypto asset was trading at around $38,000, after bitcoin closed above $42,000 yesterday.
A series of events came together: tax day, Elon Musk tweeting, etc., and we started to weaken the positives in the price action, and now we have the liquidation event,” Novogratz said. It’s not going to bounce right away, it’s going to consolidate for a while.”
Commenting on Bitcoin, Novogratz said:- “This morning we feel like surrendering. There’s a series of events, including tax day, Elon Musk’s tweets, etc., and we’re starting to weaken the positives in the price movement …… It’s not going to bounce back anytime soon.
–squawkbox (@SquawkCNBC) May 19, 2021
Although Galaxy Digital’s CEO estimated bitcoin could bottom at $36,000 or $38,000, the price bounced slightly to $42,434 before dropping back below $40,000. At press time, the bitcoin price was around $36,000.
There are a number of factors that could be at play regarding the recent cryptocurrency market volatility. Genesis Global Trading, a leading cryptocurrency broker, reported a bitcoin-driven sell-off overnight due to forced liquidations and leveraged unwinding.
Meanwhile, the firm said many ethereum cash buyers entered the market when the price of ethereum fell below $2,000 for the first time since early April, and macro funds began buying bitcoin when the price reached $35,000.
Genesis said, “While the initial bounce off the lows this morning was modest in terms of volume, we are seeing the market hold steady and institutional investors are more aligned in their willingness to do so.”
Others in the cryptocurrency space – including Konstantin Boyko-Romanovsky, CEO and founder of verified node hosting platform Allnodes, and Steve Ehrlich, CEO and co-founder of Voyager Digital – said the recent price drop may be due to reports of that China has allegedly banned cryptocurrency exchanges, services and trading after moving their investments. Three associations in China recently outlined issues related to cryptocurrency investments and warned people about market risks.
Boyko-Romanovsky said: “The correction in the cryptocurrency market is a general phenomenon. However, this does not mean that a bear market is on the horizon. The latter would be the case if the blockchain industry showed signs of slowing down. This is far from the truth.”
“What we’re seeing is a correction, but it’s an opportunity for retail participants to rebuild themselves and increase their market positions. Cryptocurrencies are not going away.”
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/bear-market-or-bull-market-cryptocurrency-experts-weigh-in-on-the-recent-volatility/
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