The oft-mention founder of the cryptocurrency investment firm Galaxy Digital Capital Management, Mike Novogratz, has now stated that he believes that cryptocurrency prices have reached the bottom of the recent bearish trend.
More specifically, Novogratz tweeted a picture of the Bloomberg Galaxy Crypto Index (BGCI) – an index intended to gauge cryptocurrency trading. Novogratz noted that the BGCI chart ”retouched the highs of late last year” as well as ”the point of acceleration that led to the massive rally/bubble.”
This statement comes as cryptocurrencies, in general, have fallen sharply in 2018. Bitcoin has currently dropped around 51% since the start of the year, whilst Ethereum has seen losses of 73% and Bitcoin Cash a price decrease of a staggering 82%.
This has prompted many industry observers to speculate what the actual floor of Bitcoin and the total cryptocurrency market capitalization might be.
Yesterday, Toshi Times covered the story of the German financial institution Allianz which forecasted that the price floor for Bitcoin would be around $5,000. Moreover, there are some even more bearish Bitcoin predictions, pegging the price floor for the cryptocurrency as low as $2,500.
Now, however, it would seem that the cryptocurrency market has recuperated some of its recent losses, as the total cryptocurrency market capitalization is back above $200 billion.
Whilst it is hard to say for sure, Toshi Times recently covered the massive market gains experienced yesterday in a price analysis. Moreover, Toshi Times also recently noted that it would appear that – at least Bitcoin – had established a price floor above $6,000.
This is not the first time that Novogratz has been bullish about the prospects of the cryptocurrency industry.
He has previously forecasted that the coming years will see an influx of institutional actors to the cryptocurrency industry, speaking at a South Korean blockchain conference.
Nevertheless, he has also stressed that widespread mass adoption of cryptocurrencies and blockchain technology might take up to five years, due in part to a growing cost and scarcity of technical talent.
Furthermore, Galaxy Digital released a quarterly report of the cryptocurrency industry in July, which showcased losses of $134 million during 2018, including $85.5 million in unrealized losses on digital assets.
It is currently unknown exactly what the state of Galaxy Digital’s finances is, but the firm had $225.8 million in digital assets as well as investments in late March this year, and total assets of approximately $281.7 million.
Image Source: “Flickr”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.