Novogratz: Bitcoin in a ‘Bit of Consolidation’ as Institutions Line Up

Bitcoin (BTC) price may have fallen below $10,000 again but that is no reason to doubt the 2019 bull market, industry investor Mike Novogratz has said.

Speaking on Bloomberg TV on Aug. 29, the founder of merchant bank Galaxy Digital noted that regardless of this week’s sideways trading, Bitcoin was still up over 200% this year.

Unlike altcoin markets, the largest cryptocurrency was in separate league, and had broadly delivered for investors.

“Bitcoin started the year at $3,800, traded at $3,500 and now it’s at $10,200 and so it’s up 200% odd percent already,” he told the network. He added:

“It has had a huge run, and so I think this is a bit of consolidation.”

Novogratz was speaking just hours before Bitcoin markets experienced a sudden dip which took them $500 lower in a matter of minutes.

While no single factor appeared to trigger a change in sentiment, the move was in line with behavior seen often in recent months. As Cointelegraph reported, margin trading is increasingly considered as a major factor behind sudden changes in BTC/USD.

As of press time Thursday, the pair was nonetheless lower still, averaging just over $9,500 on the back of 6.3% daily losses.

For Novogratz, however, increased entry of institutions into the arena will spark the next phase of Bitcoin’s bull cycle.

“The institutions that are making longer-term decisions are making sure they’ve got custody, making sure their ducks are lined up — and they’re slowly and steadily moving in,” he continued.

Novogratz is well known as a Bitcoin permabull. In August, he said global macroeconomic turbulence would fuel favorable price movements going forward, while a month previously, he pledged not to sell any more of his holdings below $14,000.

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