The cryptocurrency market is treading on dangerous waters after Bitcoin plunged to $38,000 levels during the weekend. BTC is displaying bearish sentiments and investors are nervous that the crypto market could be headed for another cold winter. The situation is grim as investors have seen their profits of 2021 wiped away in four days. Bitcoin and crypto tycoon Mike Novogratz predicted that BTC will fall further and rang warning bells of an upcoming disaster.
The crash saw the ‘fun’ element being wiped away and only the diamond hands can survive in the bear market. Novogratz predicted that this year, in 2022, people will realize that being a crypto investor could be a difficult job.
“This will be a year where people realize being an investor is a difficult job,” said Mike Novogratz in a tweet. He also tweeted, “Unfortunately Russel has like 14 percent more to go before it bottoms. Won’t be a straight line down.”
Novogratz had predicted a market crash just a few days before Bitcoin dived deep south. “Tens, bonds breaking down. As long as rates go higher we will see pressure on Nasdaq and crypto. 2% seems a logical target for tens,” he tweeted. However, lucky were the ones who paid heed to his warning and pulled out their holdings on time before the crash.
The crypto tycoon also went ahead and confirmed that the market is now bearish. He also warned investors to not blindly buy the dips. “The Russel index broke a major support and today’s roll over confirmed it’s broken. This is now a bear market. There is 1.2tr of bad equity longs above the market. Sell rallies. Don’t buy dips.” he tweeted.
Why is the Crypto Market Crashing?
The market is experiencing a bloodbath as $850 million worth of cryptocurrencies were liquated. Over the last 24-hours, a total of 183,239 investors got liquidated. The development made Bitcoin plunge near $38,500 and reached its lowest level since August 2021. Bitcoin’s fall dragged the entire crypto market down while some even dipped drastically to double digits.
Many other tokens are now down more than -50% from their all-time highs and giving investors the jitters. A recovery to previous levels might take time and force investors to hold on to their portfolios. At press time, Bitcoin was trading at $33,575.46 and is down -6.7% in the 24-hours day trade.