Following a huge surge in cryptocurrency prices this year, crypto is going through a consolidation period, Galaxy Digital Holdings Ltd, CEO Mike Novogratz said Wednesday on CNBC’s “Squawk Box.”
$40,000 is an important level for Bitcoin (BTC) to hold, Novogratz said, adding that if it falls below $40,000, $38,000 will be the next level to watch.
For Ethereum (ETH), the $2,800 level “seems to be an important level to hold.”Novogratz noted the two most popular cryptocurrencies have traded within those ranges during the consolidation period.
Novogratz told CNBC he is still anticipating a surge in cryptocurrency prices before the end of the year.
“My guess is it’s not until halfway to a third of the way through the fourth quarter that you see the next surge.”
According to him, The asset classes that perform the best throughout the year tend to be the ones that finish the year strong.
“In investing, you know, the great asset class, as it gets close to the year-end, the asset class that’s done the best usually has a great finish.”
The Galaxy Digital CEO is still pretty optimistic for a strong fourth quarter in crypto, but expects “more chop” before popular cryptocurrencies begin surging higher.
In his recent tweet, Novogratz also mentioned the U.S. Federal Reserve’s taper talk, Chian Crypto Ban and the $45,000 resistance as the key reasons for the cryptocurrency’s current weakness.
The market is down for three reasons: China reiterating their anti-crypto, anti-freedom stance; US Fed putting taper in motion; running into big overhead resistance on chart at 45k, 3200. The secular story is as strong as ever but a price consolidation is going to continue.
— Mike Novogratz (@novogratz) September 24, 2021