Benzinga | Sep 22, 2021 02:13AM EDT

If Bitcoin And Ethereum Hold Above These Levels, Market Is In 'Good Shape,' Says Novogratz

Former hedge fund manager and Bitcoin (CRYPTO: BTC) investor Michael Novogratz said that the cryptocurrency market is in "good shape" as long as Bitcoin and Ethereum (CRYPTO: ETH) hold above important levels.

What Happened: Novogratz, the founder and CEO of Galaxy Digital Holdings Ltd. (OTC:BRPHF), told CNBC on Tuesday that key levels to watch in the short term are $40,000 for apex cryptocurrency Bitcoin and $2,800 for Ethereum, the second-largest cryptocurrency by market capitalization.

See Also: How To Buy Bitcoin (BTC)

"As long as those hold, I think the market's in good shape. I see nothing but engagement and activity from our investing clients and our corporate clients," Novogratz added.

Why It Markets: The prices of Bitcoin and Ethereum dropped on Monday amid a broader market sell-off sparked by worries that embattled Chinese property developer China Evergrande Group's (OTC:EGRNF) debt crisis could lead to its collapse and spark financial contagion.

The prospects of more regulation on the cryptocurrency industry also weighed on the cryptocurrencies.

Over a seven-day period, Bitcoin has lost 10.7% of its value, while Ethereum has lost 15.8%.

Several others are also bullish on Bitcoin and Ethereum despite the broader market sell-off. Popular crypto analyst Micha?l van de Poppe recently said he believes the two cryptocurrencies are ready for an "explosive" fourth quarter.

Price Action: Bitcoin is down almost 1% during the last 24 hours, trading at $42,081.82 at press time. Ethereum is down 4.3% during the 24-hour period to $2,863.76.

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