Crypto Billionaire Issues Warning After Bitcoin Hit $100,000

As Bitcoin hovers around the $100,000 mark, Galaxy Digital CEO Mike Novogratz has weighed in on the milestone, acknowledging its significance while also issuing a warning about the risks of excessive leverage in the market.

Novogratz expressed his excitement over Bitcoin’s impressive rise, comparing its transformation to that of “digital gold.” He noted that Bitcoin has evolved from a payment method to a store of value, now becoming a key player in the global financial system.

However, he stressed that Bitcoin’s price is driven by market sentiment, emphasizing that it will rise when demand increases and fall when people lose interest.

Despite the impressive growth, Novogratz cautioned that the market is heavily leveraged, with funding costs for long positions at record highs.

He warned that this could result in sharp corrections, urging investors to remain disciplined. “When there is that much leverage in the system, it breaks it,” he cautioned.

While optimistic about Bitcoin’s future, Novogratz advised traders to be cautious during the current rally, reminding them to take profits along the way.

He predicted that the market could experience pullbacks before continuing its upward trajectory, but remains confident about Bitcoin’s long-term potential.