As Bitcoin (BTC) has continued trading sideways after dipping below $33,000 on Thursday, Galaxy Digital CEO Mike Novogratz has provided some geopolitical observations regarding the industry.

In an interview with CNBC’s Squawk Box, Novogratz said that Bitcoin price is now consolidating between $30,000 and $35,000, suggesting that the United States’ crypto community is now taking the lead in the market amid a bearish trend coming from 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.”

Novogratz also pointed to a possible correlation in Bitcoin ownership within diversified portfolios, noting that some investors could be offloading some of their crypto holdings. “If you’re a hedge fund and you’re getting whacked in your rate position and your equity position and your oil position, you’re probably going to sell some of your crypto as well," he said, adding, "It just takes a while for it to build a more diverse investor base.”

Related: China’s miner exodus a ‘big net positive for crypto,’ Mike Novogratz says

After hitting an all-time high above $64,000 in mid-April, Bitcoin has been consecutively dropping in recent months, largely prompted by alleged environmental concerns over Bitcoin mining as well as a major crackdown on crypto investment and mining by Chinese authorities. The overall sentiment on the crypto markets has been further deteriorating to “extreme fear” levels amid global financial regulators taking multiple actions against Binance, the world’s largest crypto exchange.

But despite the market’s growing concerns, some major players in the U.S. have continued their efforts to further nurture the industry in the country. On Thursday, major U.S. mining company Gryphon Digital Mining purchased a major batch of crypto mining rigs from Bitmain, a Chinese mining giant that had to halt its spot sales due to China’s crackdown on crypto mining. In June, Miami mayor Francis Suarez publicly invited foreign crypto mining companies to consider establishing data centers in the city amid miner capitulation in China.