Bitcoiners are hopeful that Bitcoin (BTC) will rebound stronger after Elon Musk’s recent price drop. But folks like Galaxy Digital CEO Michael Novogratz say choppy water will be the prospect for at least the next few weeks as newbies panicked sell.
BTC has had a turbulent month. After months of steady growth, the price on most exchanges dropped to the mid-to-low USD 40,000 over the weekend. The token is currently making a slow and shaky recovery.
Many have blamed mass liquidations in the derivatives market for the price declines, with some seemingly newer investors deciding to cut their losses after Musk’s Tesla announced it would no longer accept BTC, citing mining-related environmental concerns. Musk has also denied that Tesla liquidated the remainder of its $ 1.5 billion BTC purchase from earlier this year.
In an interview with Bloomberg TV, Novogratz stated that the price range of USD 40,000 – USD 50,000 was currently reasonable. He added a defense for BTC mining: “I think we’re going to consolidate for a while: four to six weeks. … I took [Musk’s] mining comments at face value. I don’t think the Bitcoin is specific. That’s all specific: from the gold market to YouTube. They all use a lot of electricity. And Elon has clean energy businesses. “”
A healthier environment
The Galaxy chief also claimed that the crypto industry as a whole was working on environmental, social and corporate governance (ESG) related initiatives, with some already planning to mitigate the environmental impact of miners with carbon offset projects and carbon credits.
Last week, Galaxy Digital Research released a report claiming that the gold industry and banking system use much more electricity than the Bitcoin network.
Will there be a breakthrough?
For price watchers, Novogratz, meanwhile, said he was hopeful about a regulatory breakthrough. Galaxy and others hope for American Securities and Exchange Commission approval for a BTC exchange-traded fund (ETF)
by the end of this year or early next year, '' calling approval the next catalyst ” for price growth. .
He added: “Let’s not miss the big picture for the small picture. We are going through a once-in-a-generational shift in this crypto blockchain evolution, where the financial infrastructure is starting to be rebuilt. That process is reaping momentum. “”
Meanwhile, Glassnode noted that it saw
panic-sell newbies '' and BTC HODLers step in to buy the dip. ” The analyst also emphasized that while this is the deepest correction of the current bull market, this correction is consistent. is with five big pull bakcs during the 2017 bull.
During the correction in May this year, “a total of 1.1 million addresses issued all the coins they had during this correction, providing further evidence that a panic sale is currently underway,” said Glassnode. They added that the number of addresses piling up has increased by 1.1% since the recent low.
In addition, the supply of long-term holders has reverted to accumulation mode, a pattern that resembles the macro top of 2017 again, according to the company. They also noted that a pattern of panic sales is similar to that seen in the macro peak of 2017. The company closed However, it may be a greater withdrawal time in a bull cycle this time, as weaker hands capitulate and stronger hands resume their accumulation of cheaper coins.
Meanwhile, Novogratz also had a message for Ethereum (ETH) proponents urging the token to fluctuate between USD 2,800 and USD 4,000 in its own consolidation period which would also last up to six works.