Novogratz Warns MicroStrategy Confidence Crisis Puts Bitcoin at $45K Support Test

Galaxy Digital CEO Mike Novogratz believes that the current Bitcoin slump is driven by a loss of faith in corporate treasury strategies, particularly MicroStrategy's. The company has become a leveraged Bitcoin holding firm with over 200,000 BTC held partly through debt issuance.

The market treated MicroStrategy's stock as a high-beta play on Bitcoin itself, often commanding a premium to its underlying holdings. When this premium erodes or the market questions whether the structure can hold together, Bitcoin gets dragged down.

Novogratz warns that breaking below the $60,000-59,000 support zone could open the door to $45,000. He also points to hawkish U.S. monetary policy and deteriorating crypto sentiment as headwinds.