• Bitcoin's Path To $100K 'Inevitable' But Crypto Community Is 'Leveraged To The Gills,' Warns Galaxy's Mike Novogratz, Predicts Correction To $80K Ahead

    Source: Buzz FX / 21 Nov 2024 22:50:14   America/Chicago


    Bitcoin‘s (CRYPTO: BTC) surge toward $100,000 could face a significant pullback due to excessive market leverage, Galaxy Digital Holdings Ltd. CEO Mike Novogratz warned in a recent interview, even as the cryptocurrency continues setting new records.





    What Happened: The billionaire investor highlighted concerning levels of leverage in the crypto ecosystem. “There’s a ton of leverage in the system right now,” Novogratz said on CNBC. “The crypto community is levered to the gills, and so there will be a correction.”





    While Novogratz maintains that Bitcoin reaching $100,000 is “inevitable” – with prices recently touching $99,000 – he projects a potential retreat to $80,000 during a correction phase. This would represent a 20% decline from the six-digit milestone.





    The warning comes amid broader market developments, including MicroStrategy Inc. (NASDAQ:MSTR), completing a $3 billion convertible note offering to acquire additional Bitcoin. The company currently holds 331,200 Bitcoin which it purchased at an average price of $49,874 per coin.





    See Also: Bitcoin, Ethereum, Dogecoin Prep For Early Thanksgiving: ‘BTC Is Currently (Less Than) One ETH Away From $100,000,’ Says Trader





    Supporting Novogratz’s cautionary stance, cryptocurrency analyst Michaël van de Poppe forecasts “4-6 flash crashes” before year-end, with Bitcoin potentially dropping 5-10% in single-day moves. Alternative cryptocurrencies could see even steeper declines of 20-30%.





    Why It Matters: Despite these concerns, Novogratz expressed optimism about crypto’s regulatory outlook under President-elect Donald Trump‘s administration. “The entire cabinet almost owns bitcoin, and are proponents of digital assets,” he noted, suggesting a “paradigm shift” in cryptocurrency regulation.





    The current crypto market surge has pushed total market capitalization to $3.3 trillion, with Ethereum (CRYPTO: ETH) trading at $3,359 and Solana (CRYPTO: SOL) reaching $262. Bitcoin currently trades at $98,563, maintaining its upward trajectory despite warnings of potential corrections.





    “Normally you hit 100, you bounce off a bit,” Novogratz concluded while acknowledging the possibility of higher prices due to limited supply and strong demand, particularly from Middle Eastern investors and public equity markets.





    Price Action: Bitcoin is currently trading at $99,138, up nearly 2.4% in the last 24 hours, according to Benzinga Pro data.





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    Image Via Pixabay





    Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.


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