Benzinga | Jan 7, 2022 01:11PM EST

Will Bitcoin Bottom At $38,000?

Mike Novogratz, the CEO of digital asset investment firm Galaxy Digital Holdings Ltd (OTC: BRPHF), believes that Bitcoin (CRYPTO: BTC) could go as low as $38,000 amid the latest correction in crypto markets.

What Happened: In a recent interview with CNBC's Squawk Box, Novogratz said that he foresees a price floor of $38,000 on Bitcoin.

"I know big institutions who are going through their process to put positions on. They're going to see those as attractive levels to buy," he said.

On the charts, $38,000 to $40,000 appears to be the level at which the crypto market "should bottom" according to Novogratz.

"Crypto had a monster year last year. It's hard to think you're going to grow to the sky nonstop. This is a pullback. We see a tremendous amount of institutional demand on the sidelines. I'm not nervous in the medium-term," he added.

The market-leading cryptocurrency lost over 11% of its value in the last seven days, falling to as low as $41,270 during Asian hours on Friday.

The overall crypto market cap also witnessed a significant decline in the last 24 hours, briefly falling below the $2 trillion mark.

Leading altcoins such as Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) that have a significant correlation with Bitcoin also experienced significant price declines over the past week.

Ethereum is down 14% in the last seven days while Solana is down by more than 19% over the same period.

In the last 24 hours, $896 million was liquidated from crypto markets as more than 225,000 traders had insufficient funds to keep their leveraged positions open.

Photo by Andr? Fran?ois McKenzie on Unsplash