Mike Novogratz, the CEO of Galaxy Digital, expressed through his social networks that investors have lost confidence in Bitcoin (BTC).
Bitcoin has had a rough week after more than 50% plummeted as fears of COVID-19 spread across the world. However, now that the situation has calmed down, analysts have come out to debate what caused the disaster.
Evidently, Bitcoin was not the only one to suffer, even the traditional financial markets faced quite tough times.
However, despite this, Mike Novogratz considers the answer to be much simpler for Bitcoin.
Without trust Bitcoin is worth nothing!
On March 12, Mike Novogratz published in his Twitter what “BTC has always been a game of trust. This applies to all cryptocurrencies. And it seems that global confidence has evaporated from one moment to the next. ”
In this way, Novogratz’s goal is for the crypto ecosystem to not focus on losses, but rather on finding possible solutions that allow confidence to be restored to Bitcoin.
Bitcoin has had a bad streak but it has shown us its potential. In fact, BTC briefly hit the annual low of $ 3,782 USD, before quickly recovering above $ 5,200 USD.
This shows us that all is not lost. There is still confidence and some are still trying to benefit from the extreme volatility that the cryptocurrency is experiencing right now.
However, in order to regain confidence, the panic that exists in the markets must first dissipate. And is that some experts, such as Peter Brandt, have expressed the possibility of BTC settling below $ 1,000.
Some were highly critical of the cryptocurrency after it was not a hedge against price fluctuations. However, BlockTower Capital managing partner Ari David Paul explained that BTC is the ideal endorsement when people fear cash, that is, inflation or depreciation, but not so much when pandemics occur.
In fact, Paul posted on Twitter that “During the panic, investors liquidate their positions and keep the cash. That’s because people want what allows them to buy food and pay the rent. Fear = everything falls except cash.
Also, Novogratz had previously warned his followers that the recent and dark pandemic would negatively affect Bitcoin. This he pointed out while explaining that, during adverse times, investors tend to liquidate their assets.
Thus, what happens in the markets remains uncertain. Let’s bear in mind that Novogratz has always been an optimist about Bitcoin. In fact, it previously predicted that by the end of 2020, BTC would sell above $ 12,000. However, the recent decline makes that prediction somewhat exaggerated.