Mike Novogratz calls $42,000 key support level for bitcoin as crypto sells off, sees broken stock charts for Apple, Tesla

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Mike Novogratz is one of the most high-profile bitcoin and crypto investors.

  • Bitcoin will still be under pressure in the short run, bitcoin bull Mike Novogratz said Tuesday on Bloomberg. 
  • Bitcoin, Apple stock and 2021’s other high-flying assets face year-end strain as investors prep for tax time and watch Fed policy. 
  • But Novogratz sees bitcoin holding around a key support level of $42,000.

Bitcoin bull Mike Novogratz sees the cryptocurrency finding support at $42,000 or lower amid a year-end selloff, but he’s not concerned about the price diving further in the medium term.

In an interview on Bloomberg Television on Tuesday, the billionaire boss of Galaxy Digital Holdings said “$42,000 is a pretty important level…low-40s should hold” for bitcoin.

He spoke as bitcoin and other cryptocurrencies have been under pressure recently, including a massive selloff in early December that saw bitcoin sliding by roughly 27% in one day. 

Bitcoin and big tech stocks such as Apple have had an “amazing run” this year and “nothing’s cheap,” Novogratz added, with big valuations fueled in part by a massive expansion of monetary stimulus from the Federal Reserve’s response to the coronavirus pandemic. 

“But end of the year, people are starting to sell things, and everyone I talk to feels nervous right now,” he said, as the Fed started its two-day policy meeting.

Stocks dropped Tuesday on worries the central bank may signal that a faster rate of interest-rate hikes is needed to cool down the hottest consumer inflationary environment in nearly 40 years.

Tech stocks led the decline, with the Nasdaq losing more than 1%, after markets retreated on Monday as well.

“The Apple chart broke down yesterday, it looks like it’ll easily go [down] another 7%-8%,” he said, noting that charts for tech industry heavyweights Tesla and Nvidia appear “broken” as well.

He said as 2021 wraps up, people are selling high-value assets to prepare for taxes and he’s seeing “a lot of crypto guys” buying real estate. 

But as for bitcoin, the digital currency started 2021 in the $30,000 range, and he’s not worried about crypto prices in the medium term.

“There’s been so much of a change in mindset in the space,” Novogratz said. He pointed out that two of the “biggest pools of capital” in the Middle East are starting to get into bitcoin mining and that other wealthy investors are pushing money into bitcoin. 

Read the original article on Business Insider