Crypto billionaire Mike Novogratz said Bitcoin could have an even bigger drop before it finds support and starts to rise.

Novogratz, the founder and CEO of Galaxy Digital Holdings, told CNBC that the largest digital asset may continue to fall and find a bottom around $38,000 - $40,000. This is more bearish than his projections a few weeks ago, when he said Bitcoin could hold around $ 42,000.

Novogratz said he is waiting a little more to buy the cryptocurrency

Bitcoin, which fell more than 35% in early November, was trading around $ 42,900 yesterday.

Novogratz said the decline was due to low volume, adding that there is "huge institutional demand in the country." He mentioned that he, himself, has not lost his enthusiasm for digital assets, revealing that he got a tattoo inspired by the Terra coin ($ LUNA), which surpassed $ 200, and Bitcoin.

He also expects the market to be volatile in the next few weeks, but it will not be bad in the medium term. After all, one of the reasons why Bitcoin increases is the depreciation of fiat currencies. Hawkish stance of the US Federal Reserve also supports it.

The December Fed minutes showed that officials increasingly prefer the faster route of raising rates and cutting the bank's balance sheet by $ 8.8 trillion. Speculations about an earlier rate hike pushed risk appetite down.