The Fed’s hawkish stance does not allow the winds in the cryptocurrency market to subside. However, billionaire Mike Novogratz predicts that Ethereum (ETH) is near the bottom after the successful Merge upgrade earlier this month. On the other hand, according to a well-known fund manager, the bear market is far from over.
According to Mike Novogratz, ETH is very close to the bottom
In a new CNBC interview, Galaxy Digital CEO Mike Novogratz praises Ethereum Merge. It also predicts a bottom price. However, it also rules out the possibility of a ‘catastrophic drop’ for the leading cryptocurrency Bitcoin (BTC). In this context, Novogratz makes the following statement:
Ethereum has seen a pretty big drop. We had Merge. Merge was an incredible success in many ways, wasn’t it? It shows that a decentralized community can achieve something truly complex. And I think we’re going to look at that as something really important. You know, Ethereum went from $1,000 to $2,000. And now there’s been a really big pullback. To me, the bottom here is probably at $1,250. That’s why you’re closer to the bottom than the top.
Billionaire does not foresee a catastrophic drop for the leading cryptocurrency
Novogratz also says that the growing interest of institutions will prevent Bitcoin from falling dramatically. He explains his view as follows:
There is a situation somewhere in Bitcoin. Because you see that all of these institutions are slowly coming into play. We saw that BlackRock made a deal with Coinbase and its own funds. I’ve seen this adoption. Of course there is a possibility. However, I don’t think it will be a catastrophic decline.
“Until the Fed’s strategy changes, I’m neutral on cryptocurrencies”
Novogratz acknowledges that there is a correlation between cryptocurrency prices and the Fed’s rate hike decisions. He says he will remain “neutral” on cryptocurrency prices until there is a change in this strategy. For this, he makes the following assessment:
You would be more neutral here. You would be expecting to see the Fed pivot. And then I think you’re going to see a big, big rally in crypto.
If your meme coin Dogecoin has 7 billion, keep crashing!
Michael Gayed is a renowned financial market expert and portfolio manager. As long as Dogecoin, an example of a worthless asset according to Gayed, has a market cap of $7 billion, the collapse of the financial markets is far from over.
According to the expert’s statements on the same day, it is important in which direction the bear trend is in the stock market. Because the crash in the closely related cryptocurrency market will also end when the real estate market crash is over. However, the affordability of existing homes has historically declined at the same time as sales of existing homes. Therefore, the expert notes that the situation of US housing is extremely uncertain.
“Unfortunately, the cryptocurrency market is tied to the US economy”
So, in Gayed’s view, the market crash is far from over. At the same time, there is no immediate solution. The expert refers to the principle that ‘smart investors should leave the market if people as far as possible from investments are interested in them’.
This was indirectly confirmed at yesterday’s Fed rate meeting. As you follow on Kriptokoin.com, the Fed increased the interest rate by 75 bps in line with expectations. Although the decision is pending, the crypto market has reacted with a bearish reaction. But the main focus was on the Fed chair’s speech announcing a rate hike to a restrictive level above neutral, reflecting the regulator’s harsh and highly hawkish view on measures to curb stubborn inflation.