Former hedge fund manager Mike Novogratz has announced that he sold a small portion of his Bitcoin holdings after the cryptocurrency soared by over 20 percent within a single day.

Speaking on CNBC’s “Squawk Box” television show, the Galaxy Digital Holdings CEO expressed a twinge of regret over not selling a larger percentage of his holdings.

While Bitcoin reached nearly touched $14,000 for the first time since early 2018, its price tanked by over $1,800 immediately after.

$14,000: A Tradable Top for Bitcoin?

According to Novogratz, Bitcoin’s parabolic price growth caused the digital currency to hit a “tradable top” for the time being.

The sudden burst of trading volume even caused American cryptocurrency exchange Coinbase to suffer from a complete outage. He also referenced a second cryptocurrency exchange, likely the Indian firm Koinex, which permanently shut down operations on the day of the rally citing regulatory uncertainty and instability in the region.

Roughly a day later, Bitcoin prices have dropped by over 20 percent, stabilizing in the low-$11,000 regions. If the past is any indication, however, that could change within a matter of hours — if not minutes.

Novogratz is the founder and CEO of crypto-focused merchant bank Galaxy Digital Holdings, which means that selling part of his portfolio was simply a calculated move to cash in on the cryptocurrency’s volatility. In the same interview with CNBC, he said that Bitcoin will continue trading in the $10,000 to 14,000 region for an extended period of time.

While discussing his company’s financial results on May 30, however, Novogratz had a much more conservative estimate on offer. He said:

“On a go forward basis, Bitcoin probably consolidates somewhere between $7,000 and $10,000.”

Factors Influencing Growth

Many financial experts, including Novogratz, believe that Facebook’s Libra digital currency announcement spurred the recent bull run. The billionaire investor said:

“One of the largest companies in the world said we believe in cryptocurrencies. If you’re an institutional investor who’s getting close and still worried about investing, it makes you that much more confident.”

That said, Bitcoin has been on an upward trajectory for several weeks now — well before Facebook formally revealed its upcoming token.

Did you manage to profit from Bitcoin’s momentary bull run to $14,000? Do you think that the price will consolidate around $10,000 for the foreseeable future? Let us know your thoughts in the comments below.