Interview with Bloomberg: Galaxy Digital CEO Mike Novogratz stated that Bitcoin and Ethereum would need to regain their bullish narratives over time.
Novogratz predicts that global macro-hedge funds will buy Bitcoin once the U.S. Federal Reserve stops raising interest rates.
“The Fed will not stop flinching… I think you’ll see many traditional macro funds who’ve had an amazing year, buying Bitcoin. He said that we would add to our position at this point.
Novogratz believes the recent cryptocurrency crash was caused by leveraged players like Three Arrows Capital, a major crypto hedge fund. Three Arrows Capital has apparently failed to meet margin demands.
According to the crypto mogul, the current crisis is similar to the collapse of Long-Term Capital Management, a now-defunct hedge-fund. After experiencing significant success, LTCM lost $4.6 billion within a matter of months because of the 1997 Asian financial crisis. It was one of the largest hedge fund failures in history, and it was eventually liquidated in 2000.
Novogratz predicts bankruptcy proceedings in many businesses.
Galaxy Digital boss is quick to compare the price performance for cryptocurrencies with Zoom Meeting, a videotelephony program. He is certain that neither Zoom nor crypto will disappear despite massive losses.
Novogratz stated, “You will rebuild an base in price, but you will rebuild your story.”
Novogratz claims that the U.S. is headed into recession and that a soft landing is not possible.
He believes that the relationship between stocks and cryptocurrencies could end on a move-forward basis.