Period of large swings for the cryptocurrency market, after the collapse of Bitcoin (BTC) despite the fact that the cryptocurrency has become legal tender in El Salvador. However, this movement did not surprise industry veterans, including also Mike Novogratz, CEO of Galaxy Digital.
In an interview with Bloomberg, the billionaire he has declared that the cryptocurrency market is still dominated by retail investors, “too excited“by the interest recently shown by institutions such as Visa and Amazon.
In his opinion, people are finally realizing that “cryptocurrencies are not just Bitcoin, bought as a hedge against bad fiscal and monetary policy. But perhaps, more importantly, they are Web 3.0, the Internet of value transfer.“
Retail investors have gone a little too long, but for good reasons: Novogratz highlighted the recent one slew of crypto-friendly news from the giants of finance and technology. Visa has for example purchased some non-fungible tokens, Walmart is looking for a Product Lead to guide the company’s crypto strategy, while Amazon has posted some job offers for cryptocurrency experts:
“There is finally a wider awareness that this is a technology, and no investor wants to miss out on the next Internet. Well, this is the next Internet.”
Novogratz said investors over-leveraged this slew of positive news, and Tuesday’s correction was just “some air that has come out of the balloon.“
Galaxy Digital is planning the acquisition of BitGo, a company that will provide the infrastructure for El Salvador’s official Bitcoin wallet. Novogratz therefore expressed its opinion on the troubled Chivo launch.
Related: El Salvador: Traders who won’t accept BTC will be breaking the law
Chivo has encountered some capacity problem servers, but Novogratz is certain that technical problems will be resolved over time. In his opinion, the real question is how the system will work in six or twelve weeks, adding that carrying out such large-scale projects is by no means easy.
Novogratz’s comments align with those of several analysts, who have indicated that Bitcoin’s crash is likely due to overleveraged traders. Yesterday, the price of the cryptocurrency suddenly plummeted below $ 43,000, causing a $ 3.5 billion liquidation. At the time of writing, BTC is hovering around $ 46,300.
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