Mike Novogratz, the founder and CEO of Galaxy Digital, recently shared his perspective with Bloomberg, suggesting that Bitcoin might be nearing its lowest point in the current downturn. This insight comes amid ongoing turmoil in cryptocurrency markets this week, where many investors and analysts are growing increasingly concerned about a prolonged bear market.
During his interview with Bloomberg, Novogratz expressed cautious optimism that Bitcoin could be approaching a bottom after the recent steep declines. However, he stopped short of making any definitive predictions.
The Galaxy Digital leader highlighted that much of the leverage has been removed from crypto markets and noted widespread pessimism among investors. He contrasted this sentiment with rising gold prices and gains in NASDAQ stocks alongside falling interest rates and supportive policies from the Trump Administration towards cryptocurrencies. Novogratz remarked that “Bitcoin was not supposed to behave like this,” implying something unexpected disrupted its trajectory. When asked about how much further pain crypto markets might endure, he projected a new price range for Bitcoin between $70,000 and $100,000.
Despite these comments, Bitcoin slipped below $70,000 today and dropped nearly 8% within 24 hours to around $66,700 early this morning. Other leading cryptocurrencies also experienced significant declines: Ethereum fell beneath $2,000 for the first time since March last year; Solana reached lows near $83—the lowest since late 2023. The Fear & Greed Index currently reads 11 out of 100 indicating extreme fear among market participants.
John Deaton Claims Banking Sector Is Manipulating $BTC's Price
John Deaton—a pro-crypto candidate running for U.S. Senate—responded to Mike Novogratz’s remarks on X (formerly Twitter) yesterday by affirming their accuracy but raising concerns over price manipulation behind the scenes. Deaton pointed out an inconsistency: while gold hits record highs amid favorable macroeconomic conditions under a crypto-friendly administration,$BTC continues crashing to fresh lows.
This discrepancy led him to focus attention on paper trading markets where he suspects traditional banks are applying tactics similar to those historically used against silver prices—namely heavy short selling through futures contracts suppressing actual demand-driven price increases.
Deaton accused established financial institutions—the so-called “old guard”—of deliberately using paper-based derivatives to depress cryptocurrency valuations as part of an effort to undermine Bitcoin’s narrative as digital gold. He concluded by asserting these banks simultaneously pursue political strategies in Washington aimed at stalling or derailing crypto legislation while manipulating asset prices directly.
This conflict represents what Deaton describes as a battle between entrenched legacy players versus emerging forces such as Coinbase CEO Brian Armstrong representing crypto’s “new guard.”
Michael Burry's Perspective on $BTC's Decline
The renowned investor Michael Burry issued stark warnings regarding Bitcoin’s future outlook—labeling it caught in a “death spiral.” According to Burry, $BTC ’s downward momentum is likely only going to intensify due partly because some holders may liquidate other assets like gold or silver trying to offset losses incurred from their cryptocurrency positions.
Burry also anticipates certain miners will face bankruptcy pressures due to sustained low prices which would exacerbate BTC’s value decline further.
Diverging sharply from Novogratz’s view,Burry does not foresee any natural floor forming for bitcoin since there is no fundamental use case strong enough to halt or reverse its collapse. “The digital gold thesis has effectively failed,”Burry stated, “if anything,the pricing reflects pure speculation leaving it vulnerable whenever negative sentiment takes hold.”