The executive said that individual and corporate investors continue to put money into Bitcoin and Ether. He believes that many Chinese still trade as they use VPNs, but barriers by the state are increasingly difficult to break.
Galaxy Digital CEO Mike Novogratz recently made some predictions about the crypto market. In addition, he spoke about the repression against cryptocurrencies in China and the evolution of the Bitcoin market.
He explained the three reasons why the cryptocurrency market is on the decline. First, China has an anti-cryptocurrency and anti-market freedom stance. Second, the US Federal Reserve (FED) has injected money into the economy to face the pandemic. Third, Bitcoin and Ether have had a high level of resistance. Novogratz said that he believes that the first two cryptocurrencies on the market will become stronger.
Novogratz Bets that the Bitcoin Market is Evolving Positively
Novogratz, who is a billionaire, believes that the Bitcoin market is evolving positively. He told CNBC that resistance at USD 40,000 for Bitcoin and USD 2,800 for Ether favors the growth of interest from investors. In addition, he said that the market would strengthen positively over time as long as the price remains.
The executive added that individual and corporate investors have not stopped putting money in Bitcoin and Ether. He stated that significant amounts of capital are entering the market privately and publicly. For that reason, he expressed that he was not nervous about the current price resistance.
Currently, the price of Bitcoin stands at around USD 41,123 while the value of Ether is around USD 2,794, according to CoinGecko.
There Are Chinese Regulatory Policies Against Cryptocurrencies
Novogratz also expressed his opinion about the influence of China on the prices of cryptocurrencies, particularly Bitcoin and Ether. Consequently, he explained that Bitcoin was much more important five months ago before the ban on cryptocurrencies by the Asian country. The latter forced many miners to migrate to other countries within and outside of Asia.
He noted that China was never a great source of innovation in the cryptocurrency sector but the marketplace sector. He believes that the Chinese are still trading a lot as they use VPNs, but it is increasingly difficult to break through state barriers. The executive also expressed his support for the use and mining of cryptocurrencies worldwide.
China recently stated that all transactions with cryptocurrencies are illegal activities. Regulatory institutions in the Asian country joined forces to block the use of those assets in the territory. That announcement hurt the price of Bitcoin and the other cryptocurrencies on the market.
Through an official statement, the People’s Bank of China said that those transactions affect and alter the economic and financial order of the country. That is the first time that the central bank and financial regulators of the currency market have banned and challenged digital currencies.
While all of the above is happening, the People’s Bank of China is developing its digital currency, the digital yuan. Unlike decentralized cryptocurrencies like Bitcoin and Ether, a CBDC will allow China to control all the transactions of citizens.
By Alexander Salazar
