The bitcoin price has experienced a sharp decline, falling toward $90,000 per bitcoin after reaching nearly $100,000 earlier this week. This dramatic pullback has erased approximately $200 billion from the combined cryptocurrency market, which previously stood at $3.2 trillion. The crash comes in the wake of Donald Trump’s U.S. election victory, which initially fueled a major rally in bitcoin and other cryptocurrencies.
Adding to market uncertainty, a recent leak has revealed the potential for a significant Wall Street shake-up in 2024, leaving traders bracing for how low bitcoin might fall. Billionaire crypto investor Michael Novogratz has issued a warning, suggesting bitcoin could drop to $80,000 before rebounding.
“There’s a ton of leverage in the system right now,” said Novogratz, CEO of Galaxy Digital, during an interview with CNBC. “The crypto community is leveraged to the gills, so a correction is inevitable.”
Novogratz believes that $80,000 will serve as a critical support level for bitcoin, preventing a deeper crash. He remains optimistic about bitcoin’s long-term growth, especially under the new Trump administration, which he describes as being “proponents of digital assets.”
“The entire cabinet almost owns bitcoin,” Novogratz noted, predicting that bitcoin will inevitably surpass the $100,000 milestone again. “Normally, you hit $100,000, and you bounce off a bit. But with limited supply, I wouldn’t be surprised if we go much higher.”
Market Analysts Predict Further Downside Before Recovery
Other market experts echo Novogratz’s cautious optimism but warn of further declines in the short term. According to Alex Kuptsikevich, chief market analyst at FxPro, bitcoin’s recent drop below $93,000 marks its fourth consecutive day of decline.
“On Monday, there was an attempt to push the price above $99,000, but it turned into a broader profit-taking scenario,” Kuptsikevich explained. He emphasized key support levels around $91,800, representing 76.4% of bitcoin’s November rally. “Without proper support at this level, bears may target $87,000, representing 61.8% of the retracement.”
Geopolitical factors have also contributed to bitcoin’s downturn, with traders taking profits following the cryptocurrency’s strong rally since November 4.
Long-Term Optimism Despite Short-Term Volatility
While bitcoin and other cryptocurrencies face near-term challenges, Novogratz and other analysts remain bullish on the market’s long-term potential. Novogratz highlighted that bitcoin’s limited supply and increasing adoption under a crypto-friendly administration could drive the next phase of growth, solidifying its status as a key player in the global financial system.
