On November 22, the Financial Associated Press reported (Editor Zhao Hao) that American billionaire and well-known cryptocurrency investor Michael Novogratz stated that Bitcoin is bound to break through the $100,000 mark, but may subsequently pull back by as much as 20%.
According to Bitstamp's quotes, on Friday (November 22) during the European session, Bitcoin briefly reached $99,500 per coin, continuing to set historical highs and approaching the $100,000 round number. The previous day, Bitcoin broke through the $95,000, $96,000, $97,000, and $98,000 marks in succession.
Novogratz told the media that Bitcoin is breaking through a series of records to reach new highs, and investors should be prepared for a brief pullback. He acknowledged that Bitcoin reaching $100,000 is 'inevitable,' but as investors unwind leveraged bets, it could fall by as much as 20%.
Novogratz is the founder and CEO of the cryptocurrency commercial bank Galaxy Digital. 'There is a lot of leverage in the current system,' he said, 'the leverage in the cryptocurrency community has reached its limit, so adjustments will occur.'
Novogratz pointed out that the price of Bitcoin could fall to $80,000 per coin—he believes this would be the absolute bottom. Based on $100,000, Novogratz thinks the upcoming adjustment for Bitcoin could reach as high as 20%.
Novogratz also mentioned that leveraged stocks and ETFs are likely to face trouble, citing MicroStrategy as an example, stating, 'There will definitely be some significant adjustments, especially for those stocks with leverage higher than the underlying commodities.'
Overnight, MicroStrategy fell more than 16%, with its year-to-date gain plummeting from 650% to 529%. The short-selling firm Citron Research pointed out that 'investing in Bitcoin is now easier than ever, and judging by MicroStrategy's trading volume, the company has completely detached from its fundamentals.'
Although Novogratz expects a significant correction is imminent, he still believes Bitcoin will eventually regain its footing and continue to rise, as he thinks President-elect Donald Trump has brought a 'paradigm shift' to crypto regulation.
'Almost the entire cabinet holds Bitcoin and supports digital assets,' he added, 'so the people around that table are very supportive of this field. They support innovation, support digital assets, and support Bitcoin.'
Novogratz mentioned that the world has noticed this, with a large buying spree occurring in the Middle East, and the public stock market showing 'unquenchable demand.'
Several executives in the digital asset industry revealed that many crypto companies like Ripple, Kraken, and Circle are vying for seats on the cryptocurrency advisory council promised by Trump, seeking a voice in its planned policy reforms.
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