- Bitcoin faced a strong correction on Thursday from its $10,900 daily high.
- The leading cryptocurrency currently trades for $10,400, reaching session lows.
- Altcoins have dropped even further, acting as high-beta plays on Bitcoin.
- The drop comes in the face of news from BitMEX, which indicates that the exchange is being charged by the CFTC for derivative and AML violations.
- Many say that this could be a long-term bear trend for Bitcoin as it shows that regulators are willing to take the wind out of the industry’s sales.
- Mike Novogratz, CEO of Galaxy Digital, is resolute.
- He recently stated that Bitcoin and crypto market dips are to be bought.
- The industry leader asserted that the crypto space is much larger than one exchange.
Bitcoin Dips Should Be Bought: Galaxy Digital CEO Mike Novogratz
Bitcoin underwent a strong rejection due to two pieces of news over the past few days. First and foremost, it was revealed that President Trump has tested positive for COVID-19. Secondly, the U.S. CFTC and other agencies charged BitMEX over anti-money laundering concerns and derivatives violations.
The leading cryptocurrency slipped from the $10,900 highs to $10,400 as of this article’s writing, a drop of nearly 5%.
Despite this weakness, Mike Novogratz, CEO of crypto investment bank Galaxy Digital, is not entirely concerned about markets. He said on Bitcoin’s prospects despite this fundamental news event:
“Crypto friends, Let’s remember that you are innocent to proven guilty. It’s a cornerstone of American justice. I have no insight into the case but I wish @CryptoHayes well. I do think that $btc and crytpo is far bigger than any one exchange or person. So buy dips.”
Crypto friends, Let’s remember that you are innocent to proven guilty. It’s a cornerstone of American justice. I have no insight into the case but I wish @CryptoHayes well.
I do think that $btc and crytpo is far bigger than any one exchange or person. So buy dips.
— Mike Novogratz (@novogratz) October 1, 2020
This comes after Novogratz has been stating for months that Bitcoin is in an advantangeous position on a macro scale because the cryptocurrency has an underlying bid due to stimulus. He thinks that the Federal Reserve and the U.S. government are driving liquidity into assets like BTC and gold.
Fundamentals Still Bullish For BTC
Other fundamental trends are still bullish for Bitcoin despite this medium-term fundamental concern.
Raoul Pal, CEO of Real Vision, recently said the following on Bitcoin’s long-term prospects:
“Most people don’t understand the latter but is simply put, Powell has shown that there is ZERO tolerance for deflation so they will do ANYTHING to stop it, and that is good for the two hardest assets – Gold and Bitcoin. Powell WANTS inflation. I don’t think he gets true demand push inflation but he will get fiat devaluation, in conjunction with the other central banks all on the same mission.”
Pal has formerly said that all other trades may be “inferior” to BTC due to fundamental trends.
Photo by Daniel Mirlea on Unsplash Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Galaxy Digital CEO: Bitcoin Dips Should Be Bought Despite BitMEX News
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Author: Nick Chong