Former hedge fund manager and Bitcoin BTC/USD investor Michael Novogratz said that the cryptocurrency market is in “good shape” as long as Bitcoin and Ethereum ETH/USD hold above important levels.
What Happened: Novogratz, the founder and CEO of Galaxy Digital Holdings Ltd. BRPHF, told CNBC on Tuesday that key levels to watch in the short term are $40,000 for apex cryptocurrency Bitcoin and $2,800 for Ethereum, the second-largest cryptocurrency by market capitalization.
See Also: How To Buy Bitcoin (BTC)
“As long as those hold, I think the market’s in good shape. I see nothing but engagement and activity from our investing clients and our corporate clients,” Novogratz added.
Why It Markets: The prices of Bitcoin and Ethereum dropped on Monday amid a broader market sell-off sparked by worries that embattled Chinese property developer China Evergrande Group’s EGRNF debt crisis could lead to its collapse and spark financial contagion.
The prospects of more regulation on the cryptocurrency industry also weighed on the cryptocurrencies.
Over a seven-day period, Bitcoin has lost 10.7% of its value, while Ethereum has lost 15.8%.
Several others are also bullish on Bitcoin and Ethereum despite the broader market sell-off. Popular crypto analyst Michaël van de Poppe recently said he believes the two cryptocurrencies are ready for an “explosive” fourth quarter.
Price Action: Bitcoin is down almost 1% during the last 24 hours, trading at $42,081.82 at press time. Ethereum is down 4.3% during the 24-hour period to $2,863.76.
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