Mike Novograz, founder of the Galaxy Digital cryptographic company, admitted that he would be concerned if the current downward trend of Bitcoin persists. According to him, a fall below $8,500 is unlikely to be good news, and the decline to $6,000 and further he sees one of the most negative scenarios.
Why it is necessary to pay attention to these levels, Novograz has not explained, however has expressed confidence that about a mark of $5 000 will stop even the strongest impulse.
This opinion was announced by Novograz about a month after he said that he regretted that he had not sold enough Bitcoins when the price of the cryptocurrency rose to a local peak of about $14,000. At the time, the entrepreneur expected Bitcoin to trade between $10,000 and $14,000 in the near future, but the second half of July was downtrended.
Despite concerns about short-term price movements, Novograz believes that Bitcoin is developing in the right direction as an asset and protocol. He also believes that Bitcoin should not compete with the US dollar. Fortunately, there are other contenders for this role.
"If Bitcoin starts taking market share away from the dollar, the Federal Reserve will be nervous. But I think they are now more focused on Libra and other steybloin," said Novograz.
He also called on Bitcoin supporters to continue to promote the idea that the cryptocurrency is "digital gold" in the hope that regulators will perceive it as an asset and apply the relevant rules to it.
Speaking about the possibility of banning Bitcoin in Europe and the U.S., Novograz said that the authorities are now thinking in a different direction.
"Customer identification and anti-money laundering requirements are being seriously applied here in the US and Europe. The good news is that a lot of institutional players are entering this space, opening the way for trusted participants," he concluded.