- The value of the cryptocurrency market falls 4% in a day, while investor interest causes transaction volumes to rise by 3.81%.
- Mike Novogratz is still optimistic about Bitcoin, saying that ETF momentum will help it reach $100,000 by 2024.
In a tumultuous financial environment, the cryptocurrency market has corrected significantly in the last 24 hours. CoinMarketCap reports a 4% drop in the cryptocurrency market cap to $2.28 trillion. Transaction volumes rose 3.81% despite this reduction, demonstrating investor activity despite uncertainty.
Novogratz’s Analysis and the Prospective Recovery of Bitcoin
In response to the recent market decline on the X social media network (previously Twitter), CEO of Galaxy Digital Mike Novogratz referred to it as a “risk fish.”
Despite its enigmatic nature, this word alludes to short-term market dangers that are unlikely to have a significant effect on the long-term direction of cryptocurrencies, especially Bitcoin. Despite recent setbacks, veteran cryptocurrency analyst Novogratz is still optimistic about the future of BTC.
Wars cost $$$…. Praying we don’t get a bigger one but after the risk flush, $BTC will resume its trend higher.
I pray cool heads prevail and this is not the start of a major regional conflict.
There are so many good things going on in the mid east, it’s just tragic that…
— Mike Novogratz (@novogratz) April 13, 2024
Following Iran’s missile and drone attacks on Israel, Middle East concerns fueled the market’s recent decline. This was in response to Israel’s airstrike on Iran’s Damascus consulate earlier this month. The geopolitical crisis might escalate, affecting global financial markets, including cryptocurrency.
In addition, the market’s volatility increased due to the current geopolitical unrest, which led to the withdrawal of $130 million from the cryptocurrency market in the wake of Iran’s attack on Israel.
JUST IN: $130 million liquidated from the crypto market after Iran launched an attack on Israel.
— Watcher.Guru (@WatcherGuru) April 13, 2024
Despite these geopolitical upheavals, Novogratz highlighted his concerns and aspirations for regional security, emphasizing nonviolent dispute settlement. “I hope cool heads prevail and a regional conflict is avoided,” he said. Our presence in the Middle East is unfortunate since there are so many positive things happening.”
Economic Aspects Affecting Cryptocurrency
On the economic front, Novogratz projected that U.S. Federal Reserve rate decreases might boost cryptocurrencies. Persistent inflation and geopolitical tensions may delay rate reduction. The recent core consumer price index (CPI) data showed higher-than-expected inflation, which drove Bitcoin’s price down this week.
Novogratz believes Bitcoin can succeed despite these obstacles. By 2024, he anticipates Bitcoin’s price to reach $100,000. According to a previous ETHNews report, an analyst said Bitcoin may reach $140,000 to $4.5 million after historical post-halving price increases. This shows confidence in Bitcoin’s recovery and growth.
Bitcoin holds 54.2% of the cryptocurrency market value, so the market is closely watching its next moves. Also, a comprehensive explanation of these developments can be found in this YouTube video.