'This is not November 2017' says Mike Novogratz on bitcoin's price gyrations

After bitcoin's price fell from its highs above $40,000 this past weekend, investors were left arguing about whether that drop to almost $30,000 was an inevitable market correction or a sign of something more sinister.

Indeed, liquidations across futures venues soared to more than $3 billion as crypto exchange Coinbase reported persistent technical issues. But Galaxy Digital's Mike Novogratz isn't particularly worried. 

"I am positive this is not November 2017," he said on this week's episode of The Scoop. "Listen, the market got way, way overbought. It was overbought by every statistic, every metric you can look."

In spite of a fallen price, Novogratz said the real thesis of the past few months was adoption. More people have heard the bitcoin story, according to Novogratz, and a price correction won't meaningfully undercut that progress. There are still institutions waiting to buy, he said.

"The bitcoin-as-a-hard-asset story remains intact," Novogratz added. "This is a wash-out, a position wash-out. I don't think it will be long-term damaging. $30,000 should hold." 

He went on to highlight institutional firms that "haven't filled their coffers yet that continue to want to buy."

"Insurance companies, asset managers, big institutions haven't bought bitcoin yet and they want to," said Novogratz.

During this week's episode, Novogratz explains how he and Galaxy Digital are navigating the market correction, as well as: 

Why this price drop won't scare off institutional investors

The impact of the macro background and fiscal spending under a Joe Biden-led administration

The businesses he's most excited about, particularly in the decentralized finance space

How he's viewing Bakkt and Coinbase's plans to go public

His advice for new market entrants.

This episode of The Scoop is brought to you by Blockset. With Blockset, companies gain access to tools such as:

1. A highly scalable API that supports Bitcoin, Ethereum, Ripple, and other top chains

2. AML/KYC data expediting time to market by complying with legal requirements

3. Leading custody solutions using modern multi-party compute (MPC) technology 

Learn more and start building today.