Cryptocurrencies had a massive drop in value on Wednesday, and it might be some time until the values rise again.
Bitcoin, Dogecoin, Ethereum all drop
Multiple cryptocurrencies dropped in vallue Tuesday morning due to recent news about China adding a ban on crypto, according to CNN.
Will cryptocurrency rise again?
Galaxy Digital CEO and Chairman Mike Novogratz told CNBC’s “Squawk Box” that the price of cryptocurrencies might not rise again for a while.
- “You had a confluence of events … where you started breaking down the positivity in the price action, and now we’ve got a liquidation event,” Novogratz told CNBC. “It’s not going to bounce right back. It’ll consolidate for a while.”
Novogratz said the fall seems like capitulation, where people are selling off their holdings during a market decline so they don’t lose too much of their gains, CNBC reported.
- “Humpty Dumpty never gets put back together in two days … when he cracks,” Novogratz told CNBC. It’s going to take a while. The market will consolidate. It will find a bottom somewhere. I’m hoping it’s close to here,” Novogratz said.