Galaxy Digital CEO Mike Novogratz has shared some geopolitical insights on crypto as Bitcoin (BTC) has continued to trade sideways after plunging below $33,000 on Thursday.

Novogratz said in an interview with CNBC’s Squawk Box that Bitcoin’s price is now consolidating between $30,000 and $35,000, implying that the US crypto community is now taking the lead in the market despite a bearish trend in Asia.

The longtime Bitcoin bull noted that China’s crackdown on the crypto market is part of broader issues in the market, stating:

“What we’re seeing is Asia sells it off and then the U.S. buys it back. China has declared war on crypto as part of this broader cold war that we’re getting into, and so I think we’re still digesting that.”

“China has declared war on crypto as part of this broader cold war that we’re getting into,” Mike Novogratz added.

Novogratz also mentioned a probable association between Bitcoin ownership and diversified portfolios, speculating that some investors may be selling their crypto holdings. “If you’re a hedge fund and your rate, equity, and oil positions are all getting whacked, you’re definitely going to sell some of your crypto as well,” he said, adding, “It just takes a while for it to create a more varied investor base.”

Following an all-time high around $64,000 in mid-April, Bitcoin has been steadily declining in recent months, owing to purported environmental concerns about Bitcoin mining as well as Chinese authorities’ big crackdown on crypto investment and mining. The overall sentiment on the crypto markets has deteriorated to “extreme fear” levels as a result of several actions taken by global financial regulators against Binance, the world’s largest crypto exchange.

Nonetheless, despite the market’s growing concerns, certain significant players in the United States have continued to work to build the sector in the country. Gryphon Digital Mining, a big U.S. mining business, purchased a large batch of crypto mining rigs from Bitmain, a Chinese mining powerhouse that had to cease its spot sales due to China’s crypto mining crackdown, on Thursday. Due to miner capitulation in China, Miami mayor Francis Suarez officially asked foreign crypto mining businesses to explore installing data centers in the city in June.

Related article | Galaxy Digital CEO: Bitcoin Dips Should Be Bought Despite BitMEX News

According to Novogratz, Bitcoin is likely to be under pressure for weeks after falling nearly 35 percent after setting a record high last month.

“I think we’re going to consolidate for four to six weeks,” Michael Novogratz, CEO of Galaxy Digital LP, said in an interview, calling a price range of $40,000 to $50,000 reasonable.

The explosion in interest for joke coins like Doge — which Musk has been tauting on Twitter — makes it harder for people to take the broader cryptocurrency market seriously, Novogratz said in a Bloomberg Television interview. Yet he said there was real angst behind some of the support for Doge.

“What you’re seeing is a response against the monetary policies of the U.S. and the world,” he said. Crypto has become too tribal, so much so that a friend of his who criticized Doge on Twitter received six death threats, Novogratz said.

Related article | Bitcoin Isn’t Good For Payments, Says Mike Novogratz

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