A SPEED BREAKER FOR CRYPTO INVESTORS
Galaxy Digital CEO Michael Novogratz said he sees a difficult road ahead for crypto equity investors, although he still hopes there will be an increase in crypto discovery and its use in the real world.
Novogratz, its company that provides financial services and investment management in digital assets, has referred to bitcoin (BTC) as a value store that will remain a "major real asset." He spoke at the Piper Sandler Global Exchange & Brokerage Conference on Wednesday.
In crypto markets and budgets, Novogratz is not banking on V-shaped returns. Instead, he predicts a combination of market fluctuations, fluctuations and volatility until “a new story” emerges over the macroeconomic environment and interest rates. The US Federal Reserve's rising interest rate to lower inflation is creating tensions and uncertainty over economic models, he said, adding that it is "preparing for a long-term war."
Of the nearly 1,900 crypto-focused hedge funds, Novogratz estimates that two-thirds could go out of business.
However, Novogratz said he will continue to hire people and does not see a lack of talent or excitement in crypto. The Galaxy "is in a very good position to build on this decline," he said.
"Why do I still hire people and hope to see [crypto] acceptance in real life" and real applications, "Novogratz said. In addition, Galaxy continues to enroll more investors.
With the fall of Terra's UST stablecoin, Novogratz said the important lesson is not to put all your eggs in one basket and have proper rules to control the risk. It is also wise to remove chips from the table along the way, he said.