Tuesday saw Bitcoin take a bit of a tumble, with the price of the asset currently down 7% in the past 24 hours. Despite the drastic pullback, some investors do not see this as a bearish sign, including Mike Novogratz of Galaxy Digital.
Bitcoin Sees Pullback From Monthly Highs, Volume Still Strong
At midday (GMT) on Tuesday, Bitcoin began to lead the market downwards, with the price of the crypto asset seeing a gradual decline overnight. Altcoins have since followed, with cryptos like Ethereum and Bitcoin Cash posting similar losses, in terms of percentage points.
As of the time of press, the market has since found some support, with Bitcoin currently sitting at ~$7630, down 6% on the day, and altcoins staying relatively stagnant. What caught many by surprise is that exchange volume was still present throughout that drop, with the collective daily volume of the cryptocurrency industry currently amounting to a hefty $15.7 billion.
This figure may look measly in comparison to legacy markets, but in the current state of the industry, this level of volume isn’t something to scoff at. In fact, $15.7 billion is approximately 75% higher than the average daily volume seen at Bitcoin’s yearly low. Statistics like these go to show how interest in this nascent industry may be starting to ramp-up yet again.
It is currently unclear whether there was a single catalyst for this specific pullback, however, as NewsBTC has just covered, some are attributing the decline to South Korean regulators looking to regulate exchanges in a stricter manner. Nonetheless, the multi-faceted nature of the industry has led many to conclude that this 7% decline is the result of a combination of fundamental and technical factors.
Industry Leaders Don’t Believe That Bear Season Is Back
In the midst of this short-term decline, Mike Novogratz, the CEO of the crypto-centric Galaxy Digital fund, took to Twitter to reassure his followers to “stay long.”
The former hedge fund manager noted that he doesn’t see Bitcoin market dominance “pulling back any time soon,” later adding that institutional investors will have a focus on Bitcoin when making a foray into the industry. Institutional affection towards the foremost crypto asset will likely push dominance figures higher in the future, or at least in the short to mid-term.
Novogratz, a former institutional investor himself, has likely seen movement within the inner workings of this space, indicating that traditional firms hold an inclination to invest in Bitcoin, rather than altcoins.
Peter Smith, who keeps an ear close to the ground of this industry, echoed Novogratz’s sentiment in a recent interview. Speaking with Bloomberg, the CEO of Blockchain noted:
“Institutions, when they are coming into the crypto market, usually buy Bitcoin first. And so I expect Bitcoin to outperform relative to other major cryptos in the next 6 months.”
While the statement from Galaxy Digital’s CEO mostly speaks of Bitcoin dominance, the investor’s closing remarks of “stay long,” show that he expects for the asset to increase in dominance, while also seeing a rise in price.
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