Well-known bitcoin (EXANTE: BTC.EXANTE) supporter and Chief Executive of crypto investment firm Galaxy Digital Michael Novogratz says the recent bitcoin drop might be caused due to the loss of investors' confidence.
Novogratz says bitcoin was always "a confidence game."
Earlier bitcoin started the day with a negative dynamic, falling below the $4000 mark. At press time, the largest crypto by market cap is trading at $5114 (-16.25%).
Meanwhile, DeFi Project MakerDAO could experience an emergency shutdown after ethereum (ETH) loses 30%.
As a result of the sharp decline in the price of the second-largest cryptocurrency by market cap, $4M of its stablecoin Dai are not backed by their underlying crypto asset. If MakerDAO eventually experiences a shutdown, 2,4 million ETHs might arrive on the market.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.