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Despite the bearish market, Mike Novogratz believes the prices will not fall much further.
Galaxy Digital CEO Michael Novogratz has stated that the price of ether and other cryptocurrencies is nearer to the bottom than US equities. He noted this while speaking at the Morgan Stanley Financials Conference. Despite the recent market sell-off, this amounts to a high degree of optimism.
Both the US equity market and the cryptocurrency market tumbled to new lows on Monday as investors prepared for interest rate hikes. There are suggestions that the US Federal Reserve may announce a recession. The cryptocurrency industry was hit worse after Celsius halted withdrawals on the platform. This sparked the suggestion that the company was going to get insolvent.
Consequently, Bitcoin has fallen to $22,000, while Ether dropped to $1,165. On the Bitstamp exchange, Ether crashed as low as $1075. According to CoinGecko data, Bitcoin and Ether are down 66.88% and 75.10% from their record highs in November 202. Comparatively, the S&P 500 Index has declined by 22% from its peak value in early January.
As a result of the most recent market rout, the total market capitalization of cryptocurrencies is now below $1 trillion. Coming from a peak of $3 trillion, this is hugely significant.
Novogratz: Ether Price Will Not Fall below the $1,000 Level
Despite the bearish market, Mike Novogratz believes the prices will not fall much further. Novogratz who has previously stated he always buys the dip said that the Ether price should hold around $1,000.
He also said:
“Bitcoin is around $20,000, $21,000 and it is $23,000, so you are much closer to the bottom in crypto than you are where I think.”
CryptoQuant analyst Ki-Young Ju also believes this to be the case. He stated that Bitcoin would hold at the $20,000 level because of institutional money. Comparatively, Novogratz believes that stocks will still decline by another 15% to 20%.
“Until I see the Fed flinch, until I really think, OK the economy is so bad, and the Fed is going to have to stop hiking and even think about cutting, I don’t think it is time to really deploy lots of capital,” Novogratz said.
At the time of writing, the price of Ether was rallying and was trading at $1224.60, according to CoinMarketCap.