As Bitcoin reaches the $100,000 mark, Galaxy Digital CEO Mike Novogratz weighed in on the milestone and warned investors about the risks of high leverage in the cryptocurrency market. “What a week it has been. $100,000 is a big moment for this space and a testament to its growth,” Novogratz said, adding that Bitcoin’s rise in the global financial landscape is significant. He likened Bitcoin’s evolution to the new generation’s digital gold: “It has evolved from a payment idea to a store of value, to digital gold.” Novogratz noted that Bitcoin has cemented its role as a store of value that fluctuates according to market sentiment: “It will go up when people want it. It will go down when people say we don’t need it.” Despite Bitcoin’s remarkable growth, Novogratz sounded the alarm about the current state of the market. “There is a frenzy of buying Bitcoin all over the world right now. Bitcoin is one of the first global assets,” he said. However, he warned about excessive leverage, noting that funding costs for long positions were “the widest he’s ever seen.” He warned that high leverage could lead to sharp corrections, saying it was important to remain disciplined: “There will be at least one or two sharp pullbacks that will test one’s emotions. When there is that much leverage in a system, it breaks it.” Related News: Binance Labs May Have Sold These Two Tokens After Altcoin Market Rise Novogratz encouraged traders to remain disciplined and take profits during Bitcoin’s rally. “Be sharp. Leverage is very high and basis spreads are the widest I’ve ever seen. Eventually, there will be pullbacks before it goes up even higher. Remember to take profits along the way,” he said. While Novogratz remained optimistic about Bitcoin’s outlook, he acknowledged the volatility inherent in a leveraged market. When asked whether the rally could continue throughout the year or into the next administration, he expressed cautious confidence: “Could it last until Trump’s inauguration? I think so.” *This is not investment advice. Continue Reading: Billionaire Mike Novogratz Speaks for the First Time After $100,000 in Bitcoin, Issues Warning
