Mike Novogratz, the CEO of crypto custody service provider Galaxy Digital appeared on CNBC to talk about recent market correction and suggested the price fall was nothing extraordinary, and when the markets get ahead of themselves, correction is a natural phenomenon. He even compared the recent correction to “tax day,” saying a lot of people made a lot of money during these bull markets and yesterday fall was trading paying their taxes for the gains they made over the past month.
"Markets get ahead of themselves, they correct. This is natural in markets. We had tax day yesterday. A lot of people made a lot of money in crypto and had to pay tax," says @Novogratz on #bitcoin falling 22% since SNL appearance. pic.twitter.com/b2k3bFKOU4
— Squawk Box (@SquawkCNBC) May 18, 2021
Crypto markets experienced a flash crash yesterday where Bitcoin fell to a 3-month low and most of the altcoins fell to their monthly lows. The price correction was attributed to a number of factors including Elon Musk’s threat to sell the remaining Bitcoin holding by Tesla and go, all-in Doge. Other factors such as growing exchange inflows and the rising funding rates were also considered as a bearish trap in the short term.
Crypto Market Bounce Back as Polygon(Matic) Records New ATH, Other Altcoins Surge As Well
The crypto market rebounded to neutralize yesterday’s losses where BTC solidified its position above $45,000 while many altcoins recorded new monthly highs. The biggest gainers among altcoins turned out to be Ethereum L2 solution Polygon formerly known as Matic as it touched a new ATH above $2 and surged by over 35% despite bearish sentiments prevailing in the market. Ripple’s XRP also rose to a new monthly high of $1.68 with a 10% surge.
Other altcoins that recorded over 10% surges include Stellar (XLM), AAVE, and Sushi. Bitcoin on the other hand has lost over 35% of its gains since the last ATH of $64,863, the biggest correction this bull season. However, crypto analysts have suggested that a market correction of 40% is anticipated in a bull market and 2017’s bull run saw several drops of over 30%.