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According to billionaire Bitcoin bull Mike Novogratz, retail investors had good reasons to overextend in the cryptocurrency market.
The crypto market has returned to big price fluctuations, with Bitcoin (BTC) experiencing a price fall on Tuesday, the day the largest cryptocurrency became legal cash in El Salvador. Many crypto veterans, including Galaxy Digital CEO Mike Novogratz, were not surprised.
Speaking to Bloomberg, the billionaire Bitcoin bull said that crypto is still dominated by retail investors who are “too excited” by the recent interest from institutions such as Visa and Amazon.
People are discovering that “crypto is not merely Bitcoin purchased as a hedge against bad monetary fiscal policy,” he says. “However, perhaps more importantly, it’s Web 3.0. It is the value transfer internet.”
Retail investors have gotten too long on leverage for good reason, according to Novogratz, who highlighted recent crypto-friendly news from finance and retail behemoths such as Visa purchasing nonfungible tokens and describing them as a promising medium, Walmart’s pursuit of a crypto product lead, and Amazon’s job postings for crypto experts.
“There is a realization that this is a technology and no investor wants to miss the next internet. This is the next internet.”
Novogratz said that investors got too excited, and the price drop on Tuesday was “a little air being popped out of the balloon.”
According to Novogratz, investors became overly exuberant, and the price decrease on Tuesday was “a little air getting popped out of the balloon.”
As his company, Galaxy Digital, prepares to complete its acquisition of BitGo, the infrastructure provider for El Salvador’s official Bitcoin wallet, Novogratz commented on the Chivo wallet’s troubled start.
The state-issued Chivo wallet faced server capacity issues, but Novogratz expects the technological issues will be remedied in due course. He stated that the real concern is how the system would function in six or twelve weeks, noting that such large-scale initiatives are difficult to complete.