Major price swings are back in crypto markets, followed by a Bitcoin price crash (BTC), on Tuesday, the day that El Salvador legalized the largest cryptocurrency. It was not surprising for many crypto experts, including Galaxy Digital CEO Mike Novogratz.
Bloomberg: The billionaire Bitcoin bull stated that crypto is still dominated and dominated by retail investors who are “too excited by” recent interest from institutions such as Visa and Amazon.
He said that people are now realizing that crypto is more than just Bitcoin being purchased to hedge against bad monetary fiscal policies. Its Web 3.0, perhaps even more important. Its the internet value transfer.
Novogratz stated that retail investors were too focused on leverage for good reasons. He highlighted recent crypto-friendly news from finance giants such as Visa buying nonfungible coins and calling them a promising medium. Walmart is also looking for a crypto product leader, as well as the job openings posted by Amazon for crypto experts.
“There is a recognition that this technology is important and no investor would want to miss the next Internet.” This is the next Internet.
Novogratz stated that investors were too excited, and that the Sept. 7 price drop was just “a little air being popped from the balloon.”
Novogratz commented on the shaky start to the Chivo wallet as Galaxy Digital plans to acquire BitGo, El Salvadors infrastructure provider for Bitcoin wallets.
Related: El Salvador demands that merchants process BTC transactions or face legal action
Although the state-issued Chivo wallet suffered server capacity issues, Novogratz believes that technical problems can be fixed over time. He stated that the main question is how the system will function in six to 12 weeks.
Novogratzs comments are in line with many analysts who blamed overleveraged traders for the Bitcoin price crash. On Sept. 7, the largest cryptocurrency plunged to $43,000 after it was liquidated more than $3.54 trillion in derivative markets. At press time, BTC hovers around $45,000