Bitcoin price needs to hold above $40,000 and $2,800 is an important level for ETH in short term
In an interview with CNBC on September 21, Galaxy Digital CEO Mike Novogratz allayed fears of the latest sell-off in crypto markets. He also suggested which price levels are important to watch right now for Bitcoin price and ETH.
“We held $40,000 overnight in #bitcoin and $2,800 in #ethereum. Those are very important levels for people to watch. As long as those hold, I think the market is in good shape,” says @novogratz on #crypto during #evergrande. pic.twitter.com/hcKuhUssAq
— Squawk Box (@SquawkCNBC) September 21, 2021
Bitcoin price at $40,000, Ethereum at $2,800 critical levels to watch now
According to Novogratz, the reason for the crisis in the crypto market and the plunge of Bitcoin and other crypto markets has been caused by the liquidity crisis of the second-largest real estate company in China—Evergrande Group—that holds almost $2 trillion in debt from its shareholders, as AZCoin News reported. The company’s debt securities are due later this week, while the company’s cash reserves to make the necessary payments are currently low.
Novogratz argues that the price drop was more a healthy corrective move for a market that had spent several months in up-only mode.
“I think the market got itself a little too long; the China news scared people,” he said, also noting concerns over U.S. regulatory activity. For the short term, very important levels to watch are $40,000 for Bitcoin and $2,800 for ETH.
He stated, as long as the first and second-largest cryptocurrencies hold on to them, the market is in good shape, “As long as those hold, I think the market’s in good shape.”
Looking beyond market action, however, the underlying demand from institutional investors has remained untouched. “I see nothing but engagement and activity from our investing clients and our corporate clients,” Novogratz added.
BTC/USD 4-hour chart | Source: TradingView
At press time, Bitcoin is changing hands at $42,629, and ETH is trading at $3,002. During this plunge, Bitcoin hit its lowest level since August.
The flagship digital currency continues to decline after losing more than 5% on Sept. 20. Overall, Bitcoin has dumped over 17% in the past three days, falling from $48,719 on Sept. 18 to $40,226, its lowest level since August of this year. This includes 7% lost overnight, after which BTC dropped and stopped slightly above $40,000.
The overall value of the global crypto market was pushed back below $2 trillion, now is trading at $1.899 trillion.
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