Galaxy Digital CEO called the conditions for crypto market recovery
Mike Novogratz thinks big hedge funds working with traditional finance will start buying bitcoins after the Fed policy loosens
17.06.2022 - 15:30
396
2 min
0
What’s new? Mike Novogratz, CEO of investment firm Galaxy Digital, named the conditions for a cryptocurrency market recovery. He believes that major cryptocurrencies will take some time to return to a bullish trend. According to the investor, international hedge funds operating in traditional finance will start buying BTC as soon as the US Federal Reserve System (Fed) stops raising interest rates.
What else did Novogratz say? According to the investor, the current decline was aggravated by the plight of some major market players, such as cryptocurrency hedge fund Three Arrows Capital (3AC) - it is reported that several exchanges liquidated its positions due to the inability to repay margin calls.
Novogratz compared the current crisis to the collapse of the now-defunct hedge fund Long-Term Capital Management. After significant success, LTCM lost $4,6 billion in just a few months because of the 1997 Asian financial crisis. It was liquidated in 2000, one of the largest hedge fund bankruptcies in history.
Novogratz believes that the US economy is heading into recession, and a “soft landing” in the current situation is impossible. He also added that the correlation between cryptocurrencies and the stock market could break down in the long run.
Mike Novogratz is an American trader and investor and former head of the Goldman Sachs branch in Latin America. After leaving the firm, he founded his own investment company, Galaxy Digital. It had $3,42 billion in assets under management at the end of 2021.
Novogratz previously predicted that two-thirds of cryptocurrency hedge funds would go bankrupt because of the current market decline. In his opinion, the collapse of cryptocurrency rates is caused by the Fed's policies. The investor also noted that the price of bitcoin could rise significantly if the regulator softens its policy on digital assets.
Useful material?
Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024