thecoinrepublic.com
Another ‘not so good’ news for crypto enthusiasts and investors can be found in the form of one of the industry’s experts.
CEO of Galaxy Investment Partners, Mike Novogratz, issues a warning regarding the crypto market being bearish. Mike’s firm Galaxy Investment primarily focuses on investing in cryptocurrencies like Bitcoin and Ethereum. His investment experience, knowledge about the crypto market and expertise in the field are enough for his many followers to believe in his views. Although this time, he predicted that the Crypto market and Nasdaq would see a downfall.
On 18 Jan, in his tweet, he mentioned bond rates going higher, and if they continue to surge, there will be pressure on Crypto and Nasdaq. Recent hiking in interest rates by the Federal Reserves of the US are linked to this. The FED has planned to counter the inflation problem inside the US by increasing the interest rates. It already resulted in the Crypto market facing a downfall when news broke out. Earlier this year, Bitcoin and other cryptocurrencies were escalating in their prices.
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Evaluating the reflection of the announcement by FED on the Crypto market and afterwards ongoing stock sell-offs, Mike came to that deduction about the market. The speculation can be seen in the overall downfall of the S&P 500, DOW and even on the cryptomarket.
Crypto investors also predicted that due to stock market weakness, Bitcoin would also not perform well in early 2022. Further, he also forecasted that Bitcoin would go at the bottom level of $38,000.
However, Mike is not the only person to talk about the vulnerability of the crypto market. CEO of JPMorgan Jamie Dimon also said that Federal Reserves could hike their interest rates seven times. However, he didn’t say any specific time when it could happen.
Apart from this, Goldman Sachs also said that the central bank is expected to increase its interest rates four times at least to tackle the consistent inflation problem.