According to the founder and CEO of crypto focused merchant bank Galaxy Digital Capital Management, Michael Novogratz after eight months of bear market cryptocurrency prices have hit the bottom.
In a tweet, Michael Novogratz posted the snapshot of Bloomberg Galaxy Crypto Index (BGCI. The chart represents that the value has recently touched the highs of late last year and the point of acceleration which led to the crypto bubble. According to Michael, the market likes to retrace the breakout and we retraced the whole of the bubble. In the current year, there was a decline in the prices of cryptocurrencies. In 2018, Bitcoin has reported a decline of 51% while Ethereum and Bitcoin Cash have dropped 73% and 82% of their values respectively.
This is the BGCI chart…I think we put in a low yesterday. 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 pic.twitter.com/EasTBYgjSj
— Mike Novogratz (@novogratz) September 13, 2018
Bloomberg Galaxy Crypto Index (BGCI) is designed to measure the performance of largest cryptocurrencies traded in U.S. dollars. BGCI is a 10 constituent cryptocurrency index which includes Bitcoin, Ethereum, Ripple, Monero, and Zcash. The index is commonly used by the investors to predict the future price trend of the cryptocurrencies. The market has rebounded from its low and the total market capitalization of cryptocurrencies has surged by more than $13 billion today. Top 20 cryptocurrencies by market capitalization are the top gainers and even showed a double digital gain.
According to the first quarter report of the Galaxy Digital Capital Management, the company owned digital assets worth of $281.7 million in which $225.8 million were digital assets. The reports also showed that the company had losses of $134 million with $85.5 million of unrealized losses on digital assets.
In July, during the Beyond Blocks Conference in South Korea, Novogratz predicted that in the next two to three years many institutions will enter in the crypto world. However, he also said that the mass adoption of the blockchain technology and cryptocurrencies will take at least five years.