Bitcoin Price Plunge 'Feels Like Capitulation,' Says Galaxy's Mike Novogratz

"These are certainly setbacks for the wallets and for the investor base," the crypto investor told CNBC.

By Lyllah Ledesma

May 19, 2021 at 3:56 p.m. UTC

Updated Sep 14, 2021 at 12:57 p.m. UTC

Galaxy Digital CEO Mike Novogratz at Invest 2017

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Lyllah Ledesma

Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Secure Your Seat

Galaxy Digital CEO Michael Novogratz told CNBC Wednesday that bitcoin’s morning price dip “felt like we had capitulation.”

His comments came as the price of BTC tumbled below $40,000 for the first time since January.
"Capitulation" refers to the point in a market downturn when investors give up on recapturing lost gains and sell rather than hold a given asset.
The cryptocurrency investor told CNBC that “the crypto revolution has happened, but these are certainly setbacks for the wallets and for the investor base.” The original and largest cryptocurrency by market capitalization is now down by more than 30% in May alone, on track for its worst month since November 2018.
“The market will consolidate and find a bottom somewhere," Novogratz predicted. "I’m hoping it’s close to here, $36,000 or maybe $38,000.”
Novogratz said there are several factors that have undermined bullish momentum recently, including the May 17 federal tax deadline in the U.S. and comments from Tesla CEO Elon Musk, who expressed caution about bitcoin’s environmental impact and said the carmaker would stop accepting BTC payments for its cars (though Tesla did not sell any of its holdings).
"Now we’ve got a liquidation event," Novogratz said.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Lyllah Ledesma

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Lyllah Ledesma