CEO of Galaxy Digital Mike Novogratz, participated in an interview on the Bloomberg channel. Evaluating the current situation of cryptocurrencies in the interview, the CEO stated that Bitcoin and Ethereum need time to catch up with a rise again.
Novogratz stated that global hedge funds are eager to buy Bitcoin, but first they wait for the US Federal Reserve to stop raising interest rates.
Leading hedge fund reportedly failing to meet margin calls in recent crash Three Arrows Capital Novogratz, who also believes that it has been made worse by a group of ‘leveraged players’ such as, contributed to the shares made in recent days.
The crypto-goer compared the ongoing crisis to the collapse of the now-defunct hedge fund Long Long-Term Capital Management. hedge fundAfter a period of considerable success, LTCM had lost $4.6 billion in just a few months due to the 1997 Asian financial crisis. It was liquidated in 2000, making it one of the biggest hedge fund failures in history.
Novogratz predicts that many companies will file for bankruptcy.
Galaxy Digital Its CEO also compared the price performance of cryptocurrencies with video telephony software program Zoom Meeting. Underlining that Zoom has also suffered great losses, Novogratz believes that Zoom will not go anywhere despite this loss. Similarly, he emphasized that he believes that cryptocurrencies will not go anywhere.
“You will rebuild a price floor, you will rebuild a story,” Novogratz said. According to Novogratz, the US economy is entering recession, claiming that a “soft landing” is not possible.
Despite this negative picture believes that the correlation between cryptocurrencies and stocks could deteriorate going forward.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.