Cryptocurrency industry veteran, Mike Novogratz has weighed in on the ongoing bearish market trend, noting amongst many things, the incomprehensible basis for some of the altcoins that were pumped in the past days. Novogratz, the founder and Chief Executive Officer of Galaxy Digital, a crypto asset management firm, specifically highlighted the bullish performance of Bitcoin Satoshi Vision (BSV), XRP (XRP), and Dogecoin (DOGE) as evidence that “the market got too one way.”
In his views, the direct listing of Coinbase cryptocurrency exchange on the Nasdaq bourse made the “markets got too excited.” The excitement was reflected in the surge of several cryptocurrencies including Bitcoin (BTC), and Ethereum (ETH), like many investors, including those in the mainstream markets crowded the firm’s shares, in hopes of getting an indirect exposure to the cryptocurrency industries.
With hindsight it was inevitable. Markets got too excited around $Coin direct listing. Basis blowing out, coins like $BSV, $XRP and $DOGE pumping. All were signs that the market got too one way. We will be fine in the medium term as institutions coming to the space.
— Mike Novogratz (@novogratz) April 18, 2021
In terms of price movements, BSV surged to an All-Time High (ATH) of $491.64 on April 16, XRP jumped to its 52-week high of $1.96, defying its indictment in the ongoing Ripple-SEC lawsuit, and Dogecoin outran most altcoins to top an ATH of $0.4377. Unusually, Dogecoin has been able to maintain its meteoric rise to the top 6 cryptos by market cap, making this current price action different from the previous pump and dump schemes it has been embroiled with.
Mike Novogratz’s Short Term, Medium Term Recommendations
It is of no doubt that every market dip comes with some traders or investors who are always caught in the crosshairs. Many will buy-in at the peak and when prices fall, they tend to amass significant losses.
Drawing on this, Mike Novogratz noted that market damage does not heal overnight and recommends the building of a trading base in the short term to cushion potential price losses whenever the market excitement mounts. In the medium term, Novogratz believes the influx of institutional investors into the cryptocurrency ecosystem will help rebalance the whole system.
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