After setting a new price record at $74,000, bitcoin (BTC) is stuck in a fall that has attracted the attention of the crypto community. Mike Novogratz, one of the prominent members of the latter, spoke on the subject. He believes the price of the flagship crypto will undergo a significant correction. Here are his arguments.
Bitcoin Spot ETFs at the heart of Mike Novogratz’s predictions
The valuation of bitcoin has entered a downward trend. In this context, billionaire Mike Novogratz is sounding the alarm. He believes that a potential correction in the bitcoin price trajectory is to be expected.
The expert predicts notably a reversal of the upward trend of the queen of cryptos. Particularly if outflows from exchange-traded funds (ETFs) in the bitcoin spot market exceed inflows.
In other words, as long as inflows into these ETFs remain positive, the valuation of bitcoin should continue its rise. On the other hand, a transition towards negative flows could trigger what he calls “the first real correction” of the price of the flagship crypto.
Basically, Mike Novogratz believes that the price of bitcoin is unlikely to drop below the $50,000-$55,000 range again. Unless, he specifies, an important event occurs. Isn’t that already the case?
Bitcoin below $70,000
According to the latest, bitcoin got further bogged down over the course of the hour. Realizing a loss of 0.84% for a daily decline of around 7.80%, the asset is trading below the $70,000 mark, around $67,500.
And the technical data is not very positive in the short term. The MVRV Pricing Bands Index, which provides insights into market sentiment, suggests a potential correction that could push bitcoin to fall to around $61,700.
However, among the bearish signals, a bullish factor is emerging. It concerns significant inflows into Bitcoin ETFs. Since their creation, these financial instruments have accumulated some $31.67 billion worth of BTC.
This signals substantial purchasing power that could counter the bearish outlook. Finally, Mike Novogratz’s warning about a potential correction highlights the importance of monitoring Bitcoin ETF inflows. These are positioned as the key determinants of the price trajectory of the queen of cryptos.
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