Mike is a person.
Michael E.
As institutional investors prepare to buy thecryptocurrencies in the midst of a sell-off, Mike Novogratz expects the price to hit a bottom at $38,000.
"I know a lot of institutions that are going through the process of putting positions on and so I think they're gonna see those as attractive levels to buy," he said. $38 [thousand], $40 [thousand] feels like where we should be.
Since January 1, when the price was $47,700, the price has dropped by about 10%.
Cryptocurrencies took a big hit on Wednesday. The Federal Reserve's December meeting minutes indicated policy makers are preparing to tighten monetary policy potentially faster than previously expected. ether, the second-biggest cryptocurrencies, sank more than 10% to trade under $3,400, after it had plunged to a one-month low. The price of ether was slightly lower Thursday.
"All of us, every single investor out there, has to have some part of their head that says, 'Are we going into a paradigm shift, right?'" said the billionaire head of investment management company.
The Fed is going to raise rates to 2% over the next two years, and they're going to keep buying Treasuries for a while. We're in a bubble.
He noted that the US consumer inflation went up in 2021. "If inflation doesn't come down like the Fed thinks it will, all bets are off," he said.
It looks like it's going to be two and a half percent. If it goes to two and a half, asset prices are not going to go high.
Business Insider has an original article.
