On Thursday, crypto investors awoke to an unexpected sight, with digital assets across the board posting substantial gains for the first time in weeks. While there were many short-term speculators who were satisfied with this move, there were some optimistic commentators, analysts, and influencers within this space that saw this uptick as the start of something big.
Mike Novogratz, a former Wall Street guru turned crypto fund manager, recently revived his dusty Twitter page to issue a message regarding his thoughts on the prospects of the cryptocurrency market. Accompanying the message was an image (seen below) that highlighted Bloomberg’s “Galaxy Crypto Index,” or BGCI for short, and its performance over the past year.
As reported by NewsBTC in May, Mike Novogratz, the CEO of Galaxy Digital Capital Management, joined hands with Bloomberg to establish a USD-based index that would track the performance of crypto assets, like Bitcoin, Ethereum, Monero, XRP, Litecoin, and ZCash. Citing the index, which he parented, the digital asset proponent wrote:
“This is the BGCI chart… I think we put in a low yesterday. [We] retouched the highs of late last year and the point of acceleration that led to the massive rally/bubble… markets like to retrace to the breakout… we retraced the whole of the bubble. #callingabottom”
In other words, the Galaxy Digital CEO is calling back to the performance of the BGCI in mid-2017 in a bid to point out that the market has now retraced to pre-bull run levels. Elaborating on why this is a positive signal, the former capital markets trader explained that markets, whether it be crypto or publicly-traded stocks, “like to retrace to the breakout.”
And the fact that crypto assets have not only done this but “retracted the whole of the bubble,” may indicate that prices have finally established a bottom and are ready to undergo another round of hyperbolic growth.
Since it was posted, Novogratz’s tweet has gained traction throughout the cryptosphere, with hundreds of investors commenting on the analysis to create a metaphorical melting pot of conflicting ideas, opinion and sentiment. While there were many who agreed with Novogratz’s bullish outlook, there were some that didn’t see eye to eye with his method of analysis.
Regardless, since his transition from the cold grip of Wall Street and traditional finance to crypto, Mike Novogratz has continually touted his undying support for this industry, so it should come as no surprise that he remains as bullish as ever, even amid a deep, dark market rut. Plus, he has a lot riding on the success of crypto assets, as Galaxy Digital recently went public on Toronto’s TSX-Venture exchange to raise capital that will be an integral part in “building a best-in-class, full service, institutional-quality merchant banking business in the cryptocurrency and blockchain space.”