Galaxy Digital CEO Mike Novogratz explains why bitcoin plunged to historic lows

According to the Galaxy Digital CEO, Mike Novogratz market panic selling caused the bitcoin's price to slump down to historic lows and not institutions selling. Mike believes that bitcoin's crash to $3,700 was a leveraged washout.

The price of the leading cryptocurrency bitcoin fell to historic lows since 2013 when it lost nearly 50% in just eight hours. The crash in the price was triggered when Dow Jones witnessed its lowest fall since 1987. The coronavirus pandemic had triggered the Dow Jones fall. 

 

“BTC was always a confidence game.” 

Michael Novogratz tweeted that bitcoin was always a confidence game, and it appears global confidence in just about anything has evaporated. Jimmy Song tweeted, saying that he believes that institutions’ mass buying of bitcoin may have exposed the top currency to risks of a large selloff in such cases. Galaxy Digital CEO replied, saying that it was not institutions and was a leveraged washout. 

 

Top altcoins lost 40 to 50% in value.

Along with the leading cryptocurrency, top altcoins also lost about 40 to 50% in their value in hours as the crypto market witnessed one of its largest drop in history. Ethereum saw an intense selloff, which marked one of its largest single-day drops in percentage terms ever. On Thursday, Ethereum plummeted to lows of sub-$100, and at one point, the second-leading crypto traded down 51% over the 24-hour trading period. At the time of writing, Ethereum is changing hands at $128. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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