Galaxy Digital CEO and billionaire investor Mike Novagratz took to Twitter and commented on the crypto market after the recent crackdown in China. He believes that there is no reason to worry, and the bitcoin market is in good shape, given that “so much capital is coming into space.” He also noted that China is becoming less and less a factor in the crypto world.
According to the CEO, the crypto market has recently lost some of its profits for three reasons combined. However, he expects Bitcoin to consolidate.
First, China is stepping up the witch hunt on cryptographies. The second reason, Novogratz notes, is that the US Federal Reserve is “setting in motion.” As a third explanation, he refers to the high levels of overhead resistance for Bitcoin and Ethereum.
In a interview with CNBC Squawk Box early last week, the billionaire investor has already said that the bitcoin market is in good shape, and cites a high inflow of new capital.
“We see so much capital going into space, privately and publicly. I’m not nervous. “
He added that the $ 40,000 Bitcoin price level is “very important to people.”
“As long as they persist, I think the market is in good shape.”
Recognizing the great trade activity from China in the past, Novogratz has downplayed China’s influence on the current cryptospace. He said:
“China has never been a great source of innovation in space, but it has been a great source of trade, and I think there is still a lot of trading in China … The Chinese are smart, they know how to use VPN, but it’s getting harder and harder, and so I think that it is less and less important. “
The country’s recent crackdowns may not have been as strong as their previous actions a few months ago when miners left the country, Novogratz said.
“It was much more important five months ago before China basically said we were banning cryptography, so the miners left China.”
He then retweeted a comment made by Senator Pat Toomey, who sees the potential for the U.S. to come to the fore.