Bitcoin billionaire Mike Novogratz says crypto prices will stay under pressure as bond yields shoot higher
- Billionaire investor
Mike Novogratzhas said cryptoprices will stay under pressure as bond yields shoot higher.
- Bitcoin has tumbled over the last month to trade at around $41,000 — far below November's record high of $69,000.
Billionaire investor Mike Novogratz has said that crypto prices are likely to stay under pressure as government bond yields rise rapidly.
"As long as rates go higher we will see pressure on Nasdaq and crypto," Novogratz, founder of investment company Galaxy Digital, tweeted Tuesday.
Analysts have said that the more speculative parts of the market look less attractive when returns on government bonds, which are risk-free, are higher.
Novogratz said that the yield on the key 10-year US Treasury note could soon break past 2%, a symbolic level that could trigger further volatility in
The yield rose sharply Tuesday and climbed further Wednesday to stand at 1.89%, its highest level since the start of 2020.
Many investors are increasingly worried about the outlook for crypto in 2022.
Bitcoin and other tokens soared in 2021, in no small part because of the easy-money policies of global central banks. But those policies are about to come to an end as developed economies grapple with soaring inflation.
Crypto prices have fallen sharply over the last month. Bitcoin was roughly flat at $41,941 on the Bitstamp exchange on Wednesday, far below November's record high of more than $68,000. Ethereum was 2% lower at $3,111, also well below its own November record high of around $4,800.
SkyBridge Capital founder Anthony Scaramucci, another well-known crypto investor, said last week his firm was not buying crypto in the current climate, even at beaten-down prices.
"There'll likely be some sloppiness near term," he told CNBC. "You're gonna see these volatility waves as people jump on, they get scared, [they] jump off."
Novogratz told CNBC earlier this year that bitcoin could bottom out at between $38,000 and $40,000, and that he's waiting before he buys more.
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