Investing.com – With it already testing the psychological threshold of 30,000 last night, leading to losses of -25% over the past five days, investors are beginning to get used to the idea that the road to recovery for Bitcoin and other cryptocurrencies could be a long and difficult one.
In this regard, Michael Novogratz, the billionaire and field investor who runs Galaxy Digital Holdings Ltd, said in a statement yesterday that he expects the cryptocurrency market to remain “volatile and challenging” at least for investors. And that the coming months will shed light on its association with US stocks.
“It is likely that the digital currency will be traded in such a way that it correlates with the performance of the Nasdaq until we reach a new equilibrium,” Novogratz said on a conference call about Galaxy’s first-quarter earnings.
He reiterated that Bitcoin will hold in the $30,000 range and Ethereum will hold at $2,000.
However, he conceded that if it drops to 11,000 points, there will be “a chance” of Bitcoin dropping below $30,000, according to what he said in an interview with Bloomberg TV.
He added that he remains optimistic about the long-term prospects of the digital currency, given the strong trend of institutions to identify it. In fact, he says, the new institutional players are “bringing in with a very long-term vision”, citing institutions such as BlackRock (BLK), Blackstone, Citadel and Apollo Global Management.
Cryptocurrencies are following the same path that Internet companies followed in 2000 according to Mark Cuban
Meanwhile, another billionaire, entrepreneur Mark Cuban, who is also a crypto enthusiast, believes that digital currencies are on the same downward slope that tech and internet companies walked in the early 2000s. In his Twitter thread (TWTR) on Monday, he wrote: “Cryptocurrencies are going through a period of lull that the internet has been through.”
The comparison between cryptocurrencies and the early days of the Internet has already been pointed out by Cuban and others. Remember, the dot-com bubble burst in the year 2000 after many speculative Internet-focused companies with large investments, eventually bottoming out, before recovering to become the giant industry we know today.