Galaxy Digital CEO Mike Novogratz struck a cautiously optimistic tone about the current state of the cryptocurrency market despite the most recent sell-off at a recent conference.
The cryptocurrency mogul is convinced that Ethereum, the largest altcoin, will be able to hold the $1,000 level.
Earlier today, the price of Ether crashed to $1,075 on the Bitstamp exchange, the lowest level since January 2021. The chief altcoin erased more than 40% of its value within one week before seeing a mild recovery.
At press time, Ether is changing hands at $1,228. It seems like the cryptocurrency is in the middle of a long-overdue relief rally.
As for Bitcoin, Novogratz also believes that the flagship cryptocurrency is close to bottoming after plunging to as low as $20,816 on the Bitstamp exchange earlier today.
The total value of the cryptocurrency market is now well below the $1 trillion mark as the result of the most recent price crash.
According to data provided by CoinGecko, Bitcoin and Ether are down 66.88% and 75.10% from their record highs, respectively.
As reported by U.Today, CryptoQuant analyst Ki-Young Ju claimed that Bitcoin was unlikely to drop below the $20,000 level because of institutional money.
The most recent cryptocurrency rout was caused by leading lending platform Celsius suspending withdrawals for all of its users, fueling speculation about the company’s rumored insolvency.
The sell-off was exacerbated by U.S. equities officially entering a bear market. The S&P 500, one of the three benchmark indices, lost as much as 4% on Monday.