Mike Novogratz says Bitcoin will drop to $38,000

Mike Novogratz predicted in an interview that the Bitcoin (BTC) price would drop at the $38,000 level.

Bitcoin will drop to $38,000
Bitcoin Bearish mode | Image: optimisus

According to Novogratz, this dip is just a healthy pullback after the crypto market recorded huge gains in 2021.

Despite the market is down, the billionaire is not worried about the performance of the top cryptocurrency in the medium-term due to strong institutional demand. He says we see a large amount of institutional demand on the sidelines.

The CEO of Galaxy Digital CEO believes there will be more volatility in the coming weeks. But before that, he stressed he was bearish on the king of cryptos in the near term due to weakness in the stock market. But he also noted that BTC was unlikely to drop below the $40,000 level.

The largest cryptocurrency and stocks were down since January 6, in minutes when the Federal Reserve struck an unexpectedly hawkish tone.

Aside from this, Bitcoin investor sentiment recently hit levels low. The "Fear and Greed" indicator, which is updated every 24h, is now flashing "extreme fear" on four different time frames, according to cryptocurrency analyst Alex Kruger.