Mike Novogratz, CEO of Galaxy Digital is warning crypto traders that altcoins might yet face significant downturns.
Alts are down more than 80% from their highs. It reached over 95 percent in 2017.
That’s a 70 percent decrease. My idea is that picking bottoms is risky, and if you do, start small.
The billionaire also has a pessimistic prognosis for the entire financial industry, implying that cryptocurrency values are going to fall.
“One problem with risk modeling is that all of the episodes of stress in the past three decades that led to bottoms occurred in an easing Fed environment. The tightening cycle is still in its early stages. This implies that trust in models and even ‘intuition’ must be lowered.“
Despite the fact that the macro background appears to be pessimistic, Novogratz believes the crypto markets will eventually recover.
Crypto is here to stay. The flow of human capital into space shows no signs of diminishing. The emphasis on developing a decentralized infrastructure that allows value and ownership to flow as freely as information on the internet is not waning. The metaverse’s GDP is trending in one direction. Our community is strong, with a shared belief in a new way of doing things and the knowledge that this is just the beginning.
About Mike Novogratz
Formerly of the investment firm Fortress Investment Group. He presently serves as the CEO of Galaxy Investing Partners, a bitcoin investment firm. Galaxy Investment Partners, a cryptocurrency investment firm, is led by Novogratz. He had planned to launch his Galaxy Digital Assets Fund on December 15, 2017, however, he postponed it due to “market conditions.”
Galaxy Digital Holdings Ltd. is one of the few cryptocurrency companies that must report financial information. The corporation lost $136 million in cryptocurrency trading in the first nine months of 2018. Galaxy Digital contributed $80 million to Bitfury’s $80 million fundraising round in 2017.
In 2017, he indicated that Bitcoin and Ethereum accounted for 20% of his total wealth. He claims to have generated $250 million in cryptocurrency between 2016 and 2017. Novogratz bragged at a 2022 cryptocurrency conference that he was the “only individual in the world with both a Bitcoin tattoo and a Luna tattoo.
Also Read: Galaxy Digital’s ETH fund is being Marketed by Goldman Sachs to Investors
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