The cryptocurrency market has lost over $200 billion in the last few days, with the market cap now below $1 trillion.
Mike Novogratz, the founder and chief executive officer of Galaxy Digital Holdings Ltd., believes that the cryptocurrency market is closer to the bottom than stocks. He made this statement during a recent interview with Bloomberg.
Cryptocurrencies and stocks have been underperforming since the start of the year. Most cryptocurrencies have erased the gains they accumulated in 2021 and are trading at their 2020 levels.
Bitcoin is trading around $22k after losing more than 22% of its value in the last 24 hours. If the bearish trend continues, Bitcoin could trade around the $20k mark for the first time in more than a year.
Ether dropped as much as 21% to $1,165 on Monday. Bitcoin has lost 67% of its value while Ether is down by 74% since hitting record highs in early November.
However, Novogratz said cryptocurrencies are closer to the bottom than stocks. He said;
“Ethereum should hold around $1,000, and it’s $1,200 right now. Bitcoin is around $20,000, $21,000, and it is $23,000, so you are much closer to the bottom in crypto than you are where I think, stocks, are going to have another 15% to 20%. “Until I see the Fed flinch, until I really think, OK the economy is so bad, and the Fed is going to have to stop hiking and even think about cutting, I don’t think it is time to really deploy lots of capital.”
Some market experts attributed the recent market crash to Celsius’s withdrawal pausing policy issued on Monday. However, the cryptocurrency market began to record losses since Friday.
The rising inflation levels continue to affect the cryptocurrency and stock markets. The total cryptocurrency market cap has dropped below $1 trillion, down from the all-time high of $3 trillion recorded in November 2021.