Panic selling ensues after South Korean exchange raids

South Korean tax investigation into exchange platforms caused a massive selloff in cryptocurrency market
11 January 2018   884

Yesterday's news about South Korean authorities instigating inspection raid at two major exchanges are still shaking up the cryptocurrency market. And now not only by sensational value. The panic selling off started recently and the exchange rates quickly started to reflect the mood of the market.

And now into a little more detail. As everyone interested in the topic knows, the Asian traders have a significant impact on world crypto markets. So significant, in fact, that South Korean authorities crack-down on the residential exchange platforms and the possibility of all-out crypto ban may have caused the market to take a nose dive.

This week the second largest in the world crypto exchange Bithumb was forced do disclose all their paperwork to tax collectors and explain to local police, that their platform has no relation to gambling. The last part may be humorous, but the underlying message should be clear – “the Big Brother is watching you” for the exchanges, and will be doing it a lot closer from now on.

Also there are instances of banks that offer crypto accounts being investigated under “crime prevention” pretense. Local news outlet Yonhap News reports that the South Korean Government is developing a set of laws to abolish anonymous trading accounts.

The following media frenzy has caused a massive selloff this morning during the start of trading. And various news outlets falsely reporting that South Korea has banned cryptotrading as a whole doesn't help matters. All of this resulted in massive price drops in Bitcoin, Etherium and Litecoin.

Bitcoin May Pass Gold Market Cap, - Novogratz

Mike Novogratz continues to be Bitcoin and cryptocurrency optimist 
25 March 2019   106

The founder of Galaxy Digital, Mike Novogratz, expressed the opinion that over the next 20 years, Bitcoin’s capitalization would “easily” surpass the gold market, currently estimated at $ 7.5 trillion. It is reported by The Daily HODL.

In a conversation with the founder of Morgan Creek Digital, Anthony Pompiano, Novogratz stressed that the inflow of institutional money to the cryptocurrency market is only a matter of time, and major players like Goldman Sachs and the Intercontinental Exchange (ICE) are already mastering a new industry.

I know Goldman for instance is gearing up around securities tokens. They’re not doing anything yet, but they’re getting really ready and looking at all the questions on – where would you store them? Do you have to build your own custody, or can you use someone else’s custody? How to get them to work.

Mike Novogratz

Founder, Galaxy Digital

According to him, the growth potential of Bitcoin is strong and therefore it is advisable for investors to include the first cryptocurrency in their portfolios:

I think the macro case for [Bitcoin] is pretty strong. And so, if you can put a couple percent of your portfolio in, there’s a decent chance it catches wind. Fidelity is just getting set up. Bakkt continues to get delayed a little bit, but it’s not going to be delayed forever. They’re going to be in the game. And there’s lots of other players coming.

Mike Novogratz

Founder, Galaxy Digital

According to him, the volume of the gold market is $ 7.5-8 trillion and in order to outperform this market, the first cryptocurrency needs to grow in price at least 100 times.

Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily. And that’s giving zero optionality to all the other stuff. And so I think it seems like a pretty smart portfolio bet.

Mike Novogratz

Founder, Galaxy Digital

The founder of Galaxy Digital also touched on the topic of bitcoin futures.

The reality is, the CME kicked their butts. And these guys have limited resources on what they’re going to spend their focus, and they decided to spend it elsewhere. Finding leverage in Bitcoin is going to get easier as the architecture in the space gets better. You’re already seeing the lending market around Bitcoin went from 10% to like 3%. So once you can borrow you can short. And so now it’s not so hard to short Bitcoin. It used to be almost impossible to short Bitcoin in 2016… It wasn’t great, but it’s not critical. 

Mike Novogratz

Founder, Galaxy Digital

In February Mike expressed the opinion that, thanks to institutional money, Bitcoin will reach $ 8,000.