Mike Novogratz called the deadline for the end of the recession in the cryptocurrency market

Mike Novogratz called the deadline for the end of the recession in the cryptocurrency market

Mike Novogratz called the end of the recession in the cryptocurrency market

The recession in the cryptocurrency market will last for about 18 months, and the industry will see the first signs of recovery after the easing of the Fed's monetary policy. This was stated by the head of Galaxy Digital Mike Novogratz in an interview with New York Magazine.

Asked by journalist Jan Witzner about the depth and duration of the current recession, he said:

“I wish I had a crystal ball. My intuition tells me that 18 months, maybe even a little less. I think the Fed will have to stop raising rates by fall, and I think that will get people to calm down and start building again.”

According to Novogratz, the market is in for a big downturn, as the crisis has changed people's attitudes towards high-risk assets like cryptocurrencies. He noted that the past few months have shown an industry dependence on leverage that no one knew about.

“I hope we have already seen the worst. I would be more confident about this if I knew what inflation will be in the next two quarters,” added the head of Galaxy Digital.

Novogratz stressed that it will take time for weak players to go bankrupt and sell off collapsed assets. He drew an analogy to the global financial crisis of 2008, followed by a wave of consolidation in the investment and banking industries.

Millionaire stated that the community should not worry about the collapse of Tether's USDT stablecoin. According to him, the issuing company seems to him “quite stable”. 

He expressed a similar opinion regarding the Coinbase bitcoin exchange:

< p>“They have a lot of money on their balance sheet. I think CEO Brian Armstrong will significantly reduce this figure in the next one or two quarters. They have a great brand. The worst-case scenario for them is that a major traditional finance player will emerge to partner with them or buy the company.”

According to Novogratz, Galaxy Digital has not invested in any “credit shops” like Celsius Network. At the same time, the cryptocurrency bank invested in the BlockFi lending platform, but exited its capital more than a year ago. 

He also stated that his company never had positions in algorithmic stablecoins and did not participate in liquid staking Ethereum 2.0.

“I think ETH staking is going to be big business. Therefore, I believe that we will participate in this,” Novogratz added. will stop raising the key interest rate.

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