Bitcoin [BTC] hit by seller fatigue, prices stabilize at $6,000: Novogratz
Cryptocurrency advocate Michael Novogratz said that a ‘seller fatigue’ has struck Bitcoin, according to a report by news agency Reuters. Speaking at the Yahoo Finance’s second annual “All Markets Summit”, he said that Bitcoin price drops throughout the year indicated a new stability. BTC prices have tumbled drastically in the market during the current year. BTC is currently trading at around $6,000, a sharp 70 percent drop from its peak of nearly $20,000.
“Bitcoin has held $6,000. Yes, it is off its highs, but it has established itself as a store of value,” Novogratz said. The coin has been trading around $6,000 for the past month, occasionally going up to trade above $7,000. Novogratz argued that the crypto market has bottomed, but Bitcoin prices will bounce back.
Novogratz views institutional investments as incidents that can increase the value of BTC in the market. In the past few weeks, major banks including Citigroup and Morgan Stanley, have been announcing Bitcoin and cryptocurrency products that will enable trading and investment in cryptocurrencies. Increased institutional investments will imply that the cryptocurrency market has matured, which can spur wider adoption.
“I think institutions are moving towards investing. It’s shocking how much has happened,” said Novogratz. He thinks that banks share a common fear of missing out on the crypto market.
He added that the current reception of cannabis stocks is very similar to Bitcoin and Ethereum stocks in 2017. “The prices of cannabis stocks today feel like bitcoin and ethereum did in December of last year,” he commented.
Tilray.Inc, a cannabis cultivator and distributor, has experienced a great hike in stock prices. Their stocks are reported to be highly volatile and susceptible to abrupt price swings akin to the cryptocurrency market.
Image via Shutterstock
Join our Telegram group