Bitcoin price continued its recent crash, moving below the key support level at $90,000 for the first time since January 3rd. It has dropped by nearly 9% from its all-time high, with Billionaire Michael Novogratz expecting more pain to continue if it remains below the key support level at $100,000.
Michael Novogratz Delivers His Bitcoin Price Prediction
Bitcoin price has sold off sharply in the past few days, moving from the year-to-date high of $98,000 to the current $88,923.
The decline has coincided with the ongoing gold price surge, which has pushed it to $4,850, with most analysts expecting it to eventually soar to $5,000 soon. It also coincided with the ongoing sell-off of long-term government bonds, with the 30-year hovering at 5%.
Novogratz, the billionaire founder of Galaxy Digital, believes that these events are sending a major warning sign to the United States. In a statement, he warned that the US dollar was slowly losing its reserve status as public debt surged to over $38 trillion.
Novogratz noted that Bitcoin was facing substantial challenges, with any attempts to rebuild facing substantial selling pressure. Therefore, he believes that the Bitcoin price will need to move above the key resistance levels at $100,000 and $103,000 to confirm the bullish outlook. He expects such a move to take time to happen.
Bitcoin and other cryptocurrencies have faced major challenges this year. The most notable one was the recent stalling of the CLARITY Act in the Senate Banking Committee, a move that has slowed down the pace of regulations in the United States.
Additionally, Bitcoin and the broader crypto market are falling as investors reacted to the new developments on Greenland, a semi-autonomous island that the United States wants. It is also facing the challenge of the ongoing jitters about Japan, where interest rates are going upwards.
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Bitcoin Has Potential Catalysts Ahead
Bitcoin and the crypto market have some notable catalysts that may lead to a recovery in the coming weeks.
First, the Senate and other top leaders are working on a compromise to address the concerns raised by Coinbase on the CLARITY Act. As a result, Polymarket users believe that there is a possibility that the Market Structure Bill will be passed later this year.
Second, the Supreme Court will likely rule against Donald Trump’s tariffs, a move that will temporarily remove one of the biggest risks in the market. Such a decision would remove the leverage that Trump has in his negotiations on Greenland.
Third, Trump will have a speech at the World Economic Forum on Thursday. With the stock market falling, Trump may decide to de-escalate, which would boost the stock and crypto markets.
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