The world\u2019s largest cryptocurrency Bitcoin has tanked another 3% amid a brutal sell-off pushing the BTC price under $42,000. Well, the biggest question is whether if this is the new bottom for Bitcoin investors. And the answer is NO! Popular crypto investor and former Goldman Sachs manager \u2013 Mike Novogratz \u2013 said that Bitcoin has well enough chances to slip under $40,000 and test a new bottom at $38,000 before gaining any upward momentum. He said that this is where institutional investors might chip in once again speaking at the CNBC\u2019s Squawk Box program on Thursday, January 5. \u201cI know big institutions who are going through their process to put positions on. They\u2019re going to see those as attractive levels to buy,\u201d said Novogratz. \u201cOn the charts, $38 , $40 feels like where we should bottom.\u201d Bitcoin has been on a continuous downward trajectory over the last month. Since its all-time high of $69,000 in November, the BTC price has corrected more than 40%. Well, such massive corrections have always been part of Bitcoin\u2019s price volatility over the last decade. Fed Tightening the Monetary Policy Post the Fed commentary on Wednesday, most of the asset classes have been heading downwards pretty fast. The fact that Fed is willing to tighten its monetary policy faster than expected has forced investors to move to safe-havens. Novogratz added: \u201cAll of us, every single investor out there, has to have some part of their head that says, \u201cAre we going into a paradigm shift, right? We\u2019ve had this philosophy that the Fed\u2019s gonna keep rates low forever and even now, they\u2019re going to raise rates to 2% over two years gradually and continue to buy Treasuries for a while. So we\u2019re in this liquidity bubble.\u201d The U.S. consumer inflation has surged to a staggering 6.8% in 2021. Thus, the Fed could possibly take even bold measures to keep it under check. However, Novogratz said that there\u2019s no need to panic at this time. He further continues to remain bullish on institutional participation. \u201cCrypto had a monster year last year. It\u2019s hard to think you\u2019re going to grow to the sky nonstop. This is a pullback. We see a tremendous amount of institutional demand on the sidelines. I\u2019m not nervous in the medium-term,\u201d he added. The post More Bitcoin Pain Left, BTC Can Test $38,000 Bottom Says Mike Novogratz appeared first on CoinGape.