Novogratz: Bitcoin may see more pain ahead, but it can’t lose most of its value as it has in past

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Michael Novogratz, CEO of Galaxy Investment Partners
Adam Jeffery | CNBC

Crypto investor Mike Novogratz told CNBC on Tuesday that bitcoin faces near-term uncertainty after falling below $30,000, but he maintained a long-term positive outlook.

Bitcoin has struggled in the past two months, after notching an all-time high in April near $65,000. The weakness in recent days comes as reports indicated China took further steps to restrict bitcoin mining in the country, and as the nation’s central bank put pressure on financial firms to limit crypto-related service offerings. 

“We had China really be much more forceful in their idea to ban cryptocurrency. That’s created a retail deleveraging, ” Novogratz said on “Squawk Box.” “A lot of crypto happens in Asia, a lot of it is Chinese focused. So we’re seeing big liquidations, so it’s hard to call a bottom.”

“We’ll see if it holds on the day. We might plunge below it for a while and close above it,” Novogratz said, referring to the $30,000 price level, which some technical analysts saw as a key support level for bitcoin.

“If it’s really breached, $25,000 is the next big level of support. Listen, I’m less happy than I was at $60,000, but I’m not nervous,” added Novogratz, founder and CEO of Galaxy Digital, a crypto-focused financial services firm.

Novogratz said he was not nervous because he continues to see further adoption by institutions. He added that the leverage coming out of the crypto market is a near-term issue, but bodes well over the long-term.

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