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  • Price movement occurs due to a number of inputs according to Novogratz.
  • Libra and China’s digital currencies will be additives to Bitcoin.

The recent Bitcoin price drop was mere coincidence with Mark Zuckerberg’s hearing the U.S. House Financial Services Committee according to the CEO of Galaxy Digital Michael Novogratz. The former hedge fund manager says that the price movement occurs due to a number of inputs.

Novogratz expounds:

“Like in any commodities and any assets there are lots of inputs that drive settlement and price. There has been a bunch of negative things that have happened recently. One is the Telegram ICO being kind of stopped on its tracks by the SEC”¦ That was a kick to the stomach of the overall crypto ecosystem.”

He also cautions investors against panic selling and the impact that Libra could have on Bitcoin. He adds that Libra is a payment system and an additive to Bitcoin. Novogratz also likened the digital currency China is developing to Facebook’s Libra.

“What China is working on, a digital renminbi, and what Libra is, which is going to be either a digital dollar or a digital basket of currencies or some version of that, are payment systems. They are currencies. Where Bitcoin is gold. Gold is not a threat to the U.S. dollar nor would Bitcoin be a threat to these currencies.”