Bitcoin is the web of value transfer despite the price crash, billionaire Bitcoin proponent Mike Novogratz told Bloomberg, adding that retail investors had every reason to reach into the crypto market.
Major price swings are back
The cryptocurrency market is once again characterized by price volatility after Bitcoin’s price crashed on Tuesday. That’s when the crypto flagman became legal tender in El Salvador. These developments weren’t unanticipated for many finance experts, including the CEO of Galaxy Digital. In an interview with Bloomberg, the billionaire and Bitcoin supporter said:
“Crypto is still dominated by retail investors who are “too excited” by the recent interest from institutions such as Visa and Amazon. People are realizing that crypto is not just Bitcoin being bought as a hedge against bad monetary fiscal policy. But maybe, more importantly, it’s Web 3.0. It’s the internet of value transfer.”
Retail investors had “good reason” to get too long on leverage
Novogratz added that it was understandable why those investors got too long on leverage. He drew attention to recent pro-crypto news from retail and finance giants such as Walmart, Amazon, and Visa. Walmart is looking for a crypto product lead, Amazon is hiring crypto experts, and Visa is purchasing NFTs and presenting them as promising assets. Novogratz added:
“There is a realization that this is a technology and no investor wants to miss the next internet. This is the next internet. Investors got too excited, and the price drop on Tuesday was a little air being popped out of the balloon.
Galaxy plans to complete BitGo acquisition
It’s interesting to see how the mogul’s interests tie in. Galaxy Digital is planning to complete its acquisition of BitGo, the company providing the infrastructure for El Salvador’s national, state issued Bitcoin wallet, Chivo.
Chivo has been off to a bad start
It experienced technical problems such as server capacity errors, but Novogratz is sure those will be resolved over time. According to him, the real issue is how the system will work in two to three months. He doesn’t believe scaling such projects is an easy task.
Price crash precipitated by overleveraged traders
Novogratz’s opinion is supported by some analysts, who believe the crash was precipitated by overleveraged traders. Bitcoin plummeted to $43,000 yesterday, liquidating derivative markets of more than $3.54 billion. At the time of posting, Bitcoin is officially being traded at $46,413.40.
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