Following a huge surge in cryptocurrency prices this year, crypto is going through a consolidation period, Galaxy Digital Holdings Ltd (Pink: BRPHF) CEO Mike Novogratz said Wednesday on CNBC's "Squawk Box."
Levels To Watch: $40,000 is an important level for Bitcoin (CRYPTO: BTC) to hold, Novogratz said, adding that if it falls below $40,000, $38,000 will be the next level to watch.
For Ethereum (CRYPTO: ETH), the $2,800 level "seems to be an important level to hold." Novogratz noted the two most popular cryptocurrencies have traded within those ranges during the consolidation period.
What's Next: Novogratz told CNBC he is still anticipating a surge in cryptocurrency prices before the end of the year.
"My guess is it's not until halfway to a third of the way through the fourth quarter that you see the next surge," he said.
The asset classes that perform the best throughout the year tend to be the ones that finish the year strong, he said.
The Galaxy Digital CEO is still pretty optimistic for a strong fourth quarter in crypto, but expects "more chop" before popular cryptocurrencies begin surging higher.
BTC, ETH Price Action: Bitcoin is down 0.93% at $41,993 over a 24-hour period. Ethereum is down 1.40% at $2,900.01 over a 24-hour period.
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