Because of this, it can be dangerous to be short in Bitcoin and DOGE

With major cryptocurrencies bleeding out last day, fear seems to be taking over the market. However, Galaxy Digital and Bitcoin Bull CEO Mike Novogratz is bullish in the medium and long term. In an interview for CNBC, Novogratz spoke about the danger of selling Dogecoin, BTC, and made some predictions about their prices.

DOGE rose 314.9% on the 30-day chart and 24% over the course of the week and is an asset of those in the same move that gave GameStop (GME) stocks a boost. Led by the subreddit R / Wallstreetbets, GME’s ongoing rally put some big Wall Street players on the other side of a bad trade. Novogratz believes DOGE is driven by a similar excitement. Galaxy Digital CEO said:

Dogecoin talks a lot about the same movement as GameStop. There’s kind of crazy excitement about very young investors, about meme coins and meme ideas. It’s shocking to me that GameStop continues to have value … Dogecoin is even more bizarre in that regard.

Novogratz added that the 0% interest rate, a percentage used by banks and other businesses to measure the amount to be charged for a loan, acts as a catalyst for the DOGE or Gamestop craze. As investors are desperate for assets that can provide them with yield.

Dogecoin has drawbacks as a large chunk of its offering is held by individual companies, Novogratz said. He added that he would not buy the cryptocurrency personally and recognized the potential for potential profits:

I was wrong about DOGE. I’ve told people over and over that it wouldn’t take me long … but it’s the same energy. Retail has teeth between its teeth in many ways. They don’t give up on GameStop, they don’t give up on Dogecoin right now, so dangerous to be short wouldn’t be long.

The Coinbase effect lingers and influences Bitcoin (BTC)

Bitcoin has been a store of value for 12 years, said Novogratz. The price of BTC could move around USD 50,000, USD 55,000 and higher in a consolidation phase at this level. Novogratz believes this could give BTC enough momentum to aim for a new all-time high.

The high volatility of Bitcoin’s performance is somehow related to that of DOGE, as the crypto market is still powered by retail investors. Last week, when Coinbase (COIN) debuted on Nasdaq, many of those investors took leverage and were liquidated. Novogratz said:

The leverage has been exaggerated; People got excited. We saw there were a couple of stories on Friday night and we deleted a million separate accounts of crypto leverage buyers that were taken out. They closed and that took about 8-9 billion market cap from the system. In the long run, that’s a good thing (…).

Bitcoin is trading at $ 49.142.06, down 9.5% on the daily chart. On the weekly and monthly charts, BTC is down 21.7% and 9.3%, respectively.

BTC on a correction curve in the daily chart. Source: BTCUSD Tradingview

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