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Galaxy Digital CEO Michael Novogratz told CNBC Wednesday that bitcoin’s morning price dip “felt like we had capitulation.”
- His comments came as the price of BTC tumbled below $40,000 for the first time since January.
- "Capitulation" refers to the point in a market downturn when investors give up on recapturing lost gains and sell rather than hold a given asset.
- The cryptocurrency investor told CNBC that “the crypto revolution has happened, but these are certainly setbacks for the wallets and for the investor base.” The original and largest cryptocurrency by market capitalization is now down by more than 30% in May alone, on track for its worst month since November 2018.
- “The market will consolidate and find a bottom somewhere," Novogratz predicted. "I’m hoping it’s close to here, $36,000 or maybe $38,000.”
- Novogratz said there are several factors that have undermined bullish momentum recently, including the May 17 federal tax deadline in the U.S. and comments from Tesla CEO Elon Musk, who expressed caution about bitcoin’s environmental impact and said the carmaker would stop accepting BTC payments for its cars (though Tesla did not sell any of its holdings).
- "Now we’ve got a liquidation event," Novogratz said.
