Galaxy Digital founder and CEO Mike Novogratz said that Bitcoin (BTC) may be nearing a market bottom after dropping to around $76,000, while cryptocurrency markets shed $2.65 billion in liquidations over the past 24 hours and a broader structural downturn erased $2.2 trillion in total market capitalization.
What Happened: Novogratz Sees Bottom
Novogratz told Bloomberg Television that Bitcoin's decline to approximately $76,000 reflects selling pressure at the margin, not a collapse in institutional interest. New institutions continue to enter the market, he said, but prices remain driven by incremental buyers and sellers.
"I think we're getting close to the bottom," Novogratz said. "And listen, there's a couple of things that could help. The market structure bill. Passing would be a big deal. People are really pessimistic on it right now. I actually am a little more optimistic that things get done because I think both sides want it done."
The selloff hit hard across the board. Bitcoin fell below $64,000 on Thursday, touching a session low of $63,549 on Binance before recovering slightly to $63,750 — its lowest level since October 2024, wiping out gains accumulated since Donald Trump's election victory.
Ethereum (ETH) collapsed below $1,900, trading at $1,871 after hitting $1,868. Forced liquidations triggered cascading sell pressure across derivatives markets as prices broke through successive support levels.
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Why It Matters: Policy Catalysts Ahead
Novogratz identified two potential catalysts that could reverse the downturn. The first is passage of the market structure bill, which he said both parties in Congress support despite current pessimism about its chances.
The second is a shift in monetary policy expectations.
Recent market declines were partly driven by fears of a hawkish stance, Novogratz said, but he argued those concerns may be exaggerated. He expects policymakers to lean more dovish given current economic conditions, which could support risk assets including crypto.
He also noted that the removal of inflation tail risks is broadly positive for the U.S. economy, even if it is not immediately bullish for assets like Bitcoin, gold and silver.
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