Bitcoin and crypto prices have crashed following their huge rally on the back of Donald Trump's U.S. election victory (despite Elon Musk quietly confirming a crypto market game-changer).
The bitcoin price has crashed toward $90,000 per bitcoin, down from almost $100,000 on Monday. The crypto price correction has wiped around $200 billion from the combined $3.2 trillion market.
Now, after a leak revealed a huge Wall Street earthquake could hit bitcoin next year, traders are nervously eyeing how low the bitcoin price could fall after crypto billionaire Michael Novogratz warned it could drop to $80,000 before bouncing back.
"There’s a ton of leverage in the system right now," Novogratz, the chief executive of crypto financial services company Galaxy Digital, told CNBC. "The crypto community is levered to the gills, and so there will be a correction."
Novogratz predicted the bitcoin price could drop back to around $80,000 per bitcoin but said he didn't expect it to fall under this level—where it was trading ahead of Trump's presidential election victory that signaled a "paradigm shift" for crypto regulation.
The entire cabinet almost owns bitcoin, and are proponents of digital assets," Novogratz said of the incoming Trump administration, adding he believes it's inevitable that bitcoin eventually crosses the $100,000 per bitcoin level.
"Normally you hit $100,000, you bounce off a bit," he said. "I would not be surprised if you know, we go much higher. We're in price discovery. There's not a lot of supply," Novogratz said.
11/27 update: The bitcoin price has bounced after dropping sharply to around $90,000 per bitcoin as bullish traders wrestle control of the market from the bears.
Bitcoin and crypto prices have surged since the U.S. election of Donald Trump as president, widely regarded as a heralding an easing of strict regulation that crypto companies have complained is stifling the industry and market.
Dan Morehead, the founder of bitcoin and crypto investment company Pantera has predicted the incoming Trump administration could help the bitcoin price hit $740,000 by April of 2028—giving bitcoin a market capitalization of $15 trillion—calling it "not an inconceivable number, relative to $500 trillion in financial assets."
"[Bitcoin has] already done three orders of magnitude," Morehead wrote in a blog post, revealing Pantera's bitcoin fund has seen a 131,165% since its 2013 launch. "Another one seems plausible."
However, other bitcoin price and crypto market watchers are also warning bitcoin could fall a lot lower before it recovers.
"Bitcoin fell below $93,000 on Tuesday morning, deepening its corrective pullback and falling for the fourth consecutive day," FxPro chief market analyst Alex Kuptsikevich said in emailed comments.
"On Monday, there was a renewed attempt to take the price above $99,000, which turned into more selling. This is due to the geopolitical pullback, which has turned into a broader profit-taking scenario, looking at the entire rally since November 4. This means that traders should pay more attention to bitcoin's momentum around $91,8000 (76.4% of the rally). Without proper support in this area, the bears' next target could be the $87,000 area (61.8%)."