Bitcoin ‘Should Hold’ USD 40K, Says Novogratz. If Not – It’s a ‘Buying Opportunity,’ Argues Kraken CEO
A bitcoin (BTC) price of under USD 40,000 would be a “buying opportunity,” and the US dollar is “going to zero,” Jesse Powell, CEO of crypto exchange Kraken said in a new interview. Meanwhile, Galaxy Digital CEO Mike Novogratz said the market is in a “healthy” correction, and that a BTC price of USD 40,000 “should hold.”
Speaking with Bloomberg TV on Tuesday, Powell argued that bitcoin “certainly could” fall to as low as USD 42,000, but adding that it is difficult to predict exactly where the bitcoin price is going.
“I’m actually paying more attention to the US dollar these days, wondering where the bottom is,” Powell said, before adding “it seems like inflation is out of control, and there is no end in sight.”
Further, Powell said that although the bitcoin price has historically revolved around the four-year halving cycles, he is now of the impression that “a lot of people see anything under 40,000 dollars as a buying opportunity.”
“I was personally buying when we dipped back close to 30,000 a few months ago, and I think a lot of people have some dry powder on the sideline just waiting to come back in at rock bottom prices,” Kraken’s CEO said.
Confronted with an earlier price prediction from August this year when Powell said he believed bitcoin could reach more than USD 100,000 “late this year or early next year,” the exchange CEO reiterated that bitcoin should be seen as “a five year plus investment.”
“It’s up and down day to day and week to week. You don’t want to be trading this on short-term timeframes. It’s more of a buy-and-hold investment,” Powell said.
Lastly, asked about his top three predictions for 2022, the CEO revealed just how bearish he is on the US dollar, saying “the dollar is going to zero,” and “people should start stocking up on gasoline and milk right now probably.”
“Take on as much US dollar debt as you can, because […] there will probably be a jubilee at some point,” Kraken’s CEO concluded the interview by saying.
Going even lower may still be an option
The interview with Powell followed an earlier interview with Galaxy Digital’s Novogratz on the same channel where he said that bitcoin could fall further before buyers step in.
“I think bitcoin at 42,000 is a pretty important level, and low 40s should hold,” Novogratz said.
He added that bitcoin now “trades heavy” as people are selling across asset classes as we head into the new year, but said the “medium term” is still looking good for the cryptocurrency.
“So much money is pouring into the space, it would make no sense that the crypto prices would go much below that,” the former investment banker said. He added that “there was a lot of froth,” and that “it feels painful, but it’s probably healthy.”
“You can see it in the parties in Miami with all the great DJs. Those are short-term signs that things are a little frothy, and you have corrections, which we’re having right now,” Novogratz said about the current state of the market.
Asked if bitcoin serves as a hedge against inflation in the United States, Novogratz said that he views the cryptocurrency as “both a risk asset and something that people add to their portfolios to hedge against the debasement of fiat currency.”
“If you look at a place like Turkey, where you have really crappy stewardship of the economy […] it’s an essential,” Novogratz said about the role bitcoin plays as protection against inflation.
Looking into 2022, the Galaxy Digital CEO said that he expects it to be “the year of DeFi.” Decentralized Finance “got unloved” in 2021 because of issues related to know-your-customer (KYC) regulations, Novogratz explained.
Speaking on the future of DeFi, the former banker-turned crypto entrepreneur said:
“These are real protocols that are starting to become battle-tested, and that are going to really disrupt traditional finance.”
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