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- Mike Novogratz has provided some significant geopolitical insights into the cryptosphere
- The Galaxy Digital CEO sees the US crypto community gaining strength when the Asian community tumbles
- The bigger Asian market tumbled still the cryptosphere is witnessing good liquidation
- The billionaire investor noted that when Asians are selling off their holdings, the US is purchasing
Mike Novogratz is a billion investor who is also a prominent cryptocurrency and blockchain proponent. It is also known that Mike has invested in several blockchain startups. Recently the billionaire investor had an interview with CNBC’s Squawk Box. In the interview, the billionaire noted that the price of BTC has been stabilizing between $30k and $35k. Following the price scenario, he stated that the US crypto community seems to surpass the Asian community. Notably, a negative trend has been observed in the Asian region.
Mike Novogratz have provided geopolitical insights
Amid the global COVID-19 pandemic, Bitcoin has seen a significant bullish run. Since the beginning of this year, the entire crypto market has attracted several investors through spikes in prices. However, as the demand for digital currencies surged, financial regulators globally began to eye the market.
Due to strict regulations, Bitcoin, the leading cryptocurrency, lost more than 50% of its value in mid-May. Such a sharp dip in the price level also impacted the entire altcoin market.
In the current scenario, the flagship crypto coin is trading sideways after such a turbulent period. Following the price movements and scenario, Mike Novogratz, who is the CEO of Galaxy Digital, provided some geopolitical insights into the industry.
What insights did the billionaire provide?
Mike Novogratz noted that China’s regulatory scrutiny and prohibition of crypto firms are part of a more significant market concern. Indeed, the scenario shows that when Asia began to sell, the US started to buy.
Due to the prohibition of crypto business, Chinese miners are planning to allocate their businesses. For this reason, miners are selling their earned coins. On the other side, US firms like Microstrategy buy the coins f4om those miners over the counter.
Some whales selling off a portion of their portfolios
Novogratz mentioned in the interview a possible connection in BTC ownership across various portfolios. And implied that few of the whales must be selling a portion of their digital portfolio.
According to Mike Novogratz, if an investor is a hedge fund, they can get pounded in its rate, equities, and oil positions. Notably, in such a scenario, the hedge fund manager will have to sell a few of its cryptocurrencies as well. However, it will take just a while to build up a more diverse investor base.
However, the recent performance due to regulatory factors and celebrity words have shown some insightful things about the nascent monetary system. The destructive act of China had created retail deleveraging. Still, the cryptosphere witnesses a more large liquidation. Hence, the market could plunge still hard to call a bottom.
