Bitcoin (BTC) Bull Mike Novogratz on Altcoins Carnage: “Picking Bottoms is Dangerous”

Renowned cryptocurrency investor and entrepreneur Michael Novogratz shared his concrens about the current altcoin market situation. 

Best times for “bottoms” are yet to come

Mr. Novogratz recalled the sad times of 2018’s Crypto Winter when the prices of major altcoins lost 95% compared to the highest levels of December 2017.

Alts are down over 80 percent from the highs. In 2017 it was over 95 percent.

That is down another 70 percent.

My point is picking bottoms is dangerous and if you do scale in slowly.

— Mike Novogratz (@novogratz) May 20, 2022

According to him, by May 20, 2022, mostly, altcoins only collapsed 80%. As such, there is great potential downside for them, Mr. Novogratz supposes.

That is why he is sure that crypto traders should not be seeking local bottoms in this phase of the market cycle. At least, this strategy will not be profitable in the short-term perspective.

As covered by U.Today previously, Mr. Novogratz was among the most passionate proponents of the Terra (LUNA) ecosystem.

As it collapsed, he called its stablecoin, TerraUSD (UST), the “big idea that failed.”

Crypto markets are still dominated by extreme fear

Bitcoin (BTC) and major altcoins are attempting to recover from the unwitnessed carnage of mid-May. On May 11-12, 2022, cryptocurrency market capitalization touched $1.17 trillion: it has not been so low since early February 2022.

The Crypto Fear and Greed index by Alternative.me dipped to a 30-month low at 8/100: this is equal to the levels crypto markets were at before the “Xi Spike” of Q3, 2019.

By press time, the market still cannot recover from the “Extreme Fear” zone: the index sits at 11/100.

Bitcoin (BTC), the largest cryptocurrency, yet again failed to stay above the $30,000 level: it is changing hands at $29,960 on major spot platforms.