Crypto billionaire Mike Novogratz says bitcoin holding at $40,000 shows the market is in good shape - and recommends buying the dip

Mike Novogratz is a big name in crypto. Photo by John Lamparski/Getty Images
Mike Novogratz stated that bitcoin's $40,000 jump is a positive sign for the crypto market.

He stated that he is not concerned about the recent selloff and that it's an "buy-the dip" opportunity.

As the Evergrande crisis rattled financial markets, Bitcoin and Ethereum fell sharply Monday.

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Mike Novogratz, a billionaire crypto investor, stated that bitcoin holdings firm at $40,000 during this recent sell-off is an encouraging sign for the market and suggested buying the dip.

Novogratz spoke out earlier this week to CNBC, stating that the market was still in good shape after cryptocurrency prices fell sharply at the beginning of the week. On Thursday, cryptocurrency prices rose with bitcoin and Ethereum rising alongside altcoins.

"We had $40,000 in bitcoin overnight and $2,800 in Ethereum overnight. These are important levels to keep an eye on. He said that as long as these levels are maintained, the crypto market will be in good shape.

According to Coinmarketcap Bitcoin rose 5% to $44,159 Thursday while ether, the cryptocurrency on ethereum, rose 6.4%, to $3,122.

Both remain significantly lower than Monday's levels when bitcoin was at $47,000 and Ethereum was at $3,300. Both fell sharply Monday with bitcoin reaching $40,000 on Tuesday as Evergrande, a Chinese property developer, rattled markets. This caused investors to abandon riskier assets.

Continue reading: Three altcoins you should buy: A crypto consultant explains how ether could rise to $15,000 to flip bitcoin and critiques one token for being an overvalued joke.

Novogratz stated that he is not worried about the declines but said he believes it to be a "buy-the dip" situation.

Former hedge fund boss and founder of the digital assets investment company Galaxy, the crypto billionaire said that he is seeing a lot of activity and engagement in the crypto market. SoftBank's $680 million investment round in Sorare, a sports NFT marketplace, was cited by him.

Novogratz stated that Monday's selloff was also due to concerns over US regulation. He said that the market had taken too much time.