Bitcoin and other major cryptocurrencies could have turned a corner after a bruising nine months that has seen bitcoin lose some 60% of its value, while the likes of ethereum, ripple, bitcoin cash, EOS, and litecoin have seen even bigger declines.
That’s the opinion of former macro hedge fund manager Michael Novogratz, who has said the bitcoin price sell-off has hit its bottom and that many major cryptocurrencies are about to bounce back.
Speaking at Yahoo Finance’s second annual All Markets Summit in New York yesterday Novogratz pointed to Galaxy Digital’s cryptocurrency index which tracks the performance of 10 virtual coins and that he said it now shows a “classic bottom” in the bitcoin price.
The Bloomberg produced cryptocurrency index shows those 10 digital tokens have lost some 85% of their value from their peak at the beginning of the year.
Bitcoin is currently trading at around $6,500, down from an eye-watering near $20,000 late last year. A bull run throughout 2017 saw bitcoin, as well as ethereum, ripple, stellar, and litecoin, all make massive gains as investors around the world piled into cryptocurrencies.
“Bitcoin has held $6,000. Yes, it is off its highs, but it has established itself as a store of value,” Novogratz was reported by Reuters as saying. “I think institutions are moving towards investing. It’s shocking how much has happened.”
Throughout last year and into 2018 many of the world’s biggest banks, including the likes of Goldman Sachs, have mulled getting into bitcoin and cryptocurrency. Some have taken the first tentative steps towards the space but are cautious ahead of global regulators laying out their plans for encouraging or cracking down on the blossoming bitcoin and crypto sector.
Meanwhile, prices of bitcoin and other cryptocurrencies have managed to hold steady after the U.S. Security and Exchange Commission (SEC) again pushed back its decision on a closely-watched bitcoin exchange-traded fund (ETF) proposal last night.
The SEC said it wants to collect further public opinion on the ETF filing from VanEck and SolidX on potential market manipulation and surveillance. The SEC has already received some 1,400 comments on the proposal.
SEC secretary Brent Fields said:
Institution of such proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change. Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, as described below, the Commission seeks and encourages interested persons to provide comments on the proposed rule change.