On Wednesday (May 19), the day that Bitcoin dropped over 31% in a single day — from an intraday high of $43,601 (00:10 UTC) to an intraday low of $30,066 (13:10 UTC) on Bitstamp — Mike Novogratz shared his thoughts on what he called a “liquidation event.”
Billionaire former hedge fund manager Novogratz is the Founder and CEO of Galaxy Digital, “a diversified financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sector.”
Earlier today, on CNBC’s “Squawk Box”, Novogrtaz commented on today’s crash in the crypto market, which was led by Bitcoin.
Novogrtaz told co-anchor Joe Kernen:
“… It felt like we had capitulation this morning. You never know. The one thing that’s clear is a lot more people on crypto… crypto had seeped into pockets all over our society and you had a confluence of events — combination of tax day, Elon Musk tweets, whatnot…
“We started breaking down the positivity in the price action, and now we’ve got a liquidation event… Humpty Dumpty never gets put back together in two days when he cracks. It’s going to take a while. The market will consolidate. It’ll find a bottom somewhere.
“I’m hoping it’s close to here, $36,000 now, maybe $38,000. It did feel like capitulation this morning. You know, Ethereum, $2,600, $2,4000… We’re pretty close. They’ve had big selloffs with huge volume, but it’s not going to bounce right back. It’ll consolidate for a while.
“The story hasn’t gone anywhere… This crypto revolution has happened… These are certainly setbacks for the wallet and for the investor base… People lost a lot of money, and so they’ll dust themselves off.”
Well, it appears that the bottom for Bitcoin was around $30K since currently (as of 15:47 UTC on May 19), according to data by CryptoCompare, Bitcoin is trading around $37,759, down 12.27% in the past 24-hour period.
One thing that definitely seemed to help Bitcoin (and other cryptoassets) bounce back so strongly was a tweet sent by Tesla CEO Elon Musk around 14:42 UTC, which seemed to imply that Tesla has no intension of selling its remaining BTC holdings anytime soon.