Mike Novogratz, an investor in the cryptocurrency and chief executive of Galaxy Digital (Galaxy Digital), said on Tuesday that there was short-term uncertainty about Bitcoin falling below $30, 000, but he remained optimistic about the long-term outlook for the cryptocurrency.
Bitcoin has been struggling for the past two months after hitting an all-time high of nearly $65000 in April. The cryptocurrency briefly fell below the $29000 mark in US trading on Tuesday, wiping out all its gains since the start of the year.
As of press time, the price of Bitcoin has risen back above $32000.
"We will see if it is maintained within the day ($30, 000)," Novogratz said. "Bitcoin may stay below $30, 000 for some time and close above it. Some technical analysts believe that $30,000 is a key support level for Bitcoin.
"if it does fall below ($30, 000), $25000 will be the next important support level. I'm not as happy as I was at $60, 000, but I'm not nervous, "Novogratz added.
Bitcoin fell more than 50% from its all-time high in April on Tuesday. The cryptocurrency has fallen even more before, hitting a record high of nearly $20, 000 in December 2017 and has since plunged more than 80 per cent to below $3500.
Novogratz said he didn't expect Bitcoin to collapse as badly again.
"ecosystems are much more mature. Players who enter the stadium are much more mature. Each bank is developing its own cryptocurrency project to provide bitcoin to their customers, "Novogratz said. "I think a lot of customers who haven't bought cryptocurrencies before will see this as an opportunity to buy and participate."