Galaxy Digital CEO Mike Novogratz Says Crypto is Closer to Bottom Than Stock

Mike Novogratz, a famous American crypto proponent and founder of crypto investment firm Galaxy Digital, believes that the crypto market is closer to the “bottom” than the U.S. stock market.

Ethereum Will Likely Hold At $1k

Speaking at the Morgan Stanley Financials Conference, the billionaire investor, known for always sharing his opinions on events surrounding the asset class, showcased his bullish stance on cryptocurrencies. 

Novogratz said he is confident that bitcoin (BTC) and Ether (ETH) would not crash below $20,000 and $1,000, respectively.

The crypto proponent stated that the two leading cryptocurrencies would hold strongly at those levels while noting that the benchmark of S&P 500 (.SPX) has dropped more than 20% from its record high earlier in January, and the stock market might plummet further to 15% to 20%.

“Ethereum should hold around $1,000, and it’s $1,200 right now. Bitcoin is around $20,000, $21,000, and $23,000, so you are much closer to the bottom in crypto than you are, where I think stocks will have another 15% to 20% decline,” he said. 

The recent market sell-off, which wiped over $300 billion from the crypto market, worsened after reports of the U.S. Federal Reserve increasing interest rates surfaced on Monday. 

Although the news affected both the stock and crypto markets, the latter took more hits. Cryptocurrencies plunged to new lows, with BTC dropping below $21,000 for the first time since December 2020. Ethereum was also not left behind as the second-largest cryptocurrency dipped sharply below $1,200. 

The sell-off continued until Tuesday, which saw billions of dollars liquidated from the crypto market. But despite the bearish trends, Novogratz is optimistic that the bottoms for BTC and ETH are close. The digital assets are currently trading at $21,200 and $1,100, respectively. 

Novogratz Sees Bitcoin at $100k 

Last year, when bitcoin traded at an all-time high of $68,800, the Galaxy Digital CEO predicted that the cryptocurrency would reach the $100,000 mark. 

As reported at the time, Novogratz’s $100k Bitcoin price prediction was fueled by the increased entrance of major institutional investors to the crypto industry.