In a recent interview, Galaxy Digital CEO Mike Novogratz explained to New York Magazine his prospects for the cryptocurrency market. Also, Novogratz, who is known for being a big supporter of Terra (LUNA), who went down last month, and even got a tattoo on his arm about LUNA, also talked about the drop in the market. Here are the details…
Speculative frenzy across all asset classes
He made a statement when asked about the ongoing bear market. Novogratz pointed out that there is a speculative frenzy in many asset classes. Novogratz said that “everything needs to be looked at from a certain perspective” and used the following expressions:
If I told you at the beginning of the pandemic that you could buy Zoom stock or Bitcoin, you would double your money in Bitcoin today and do nothing in Zoom. So this is what I think is hard for people to understand. However, we should not completely disparage the crypto space. Because we had a speculative frenzy in many asset classes. Bitcoin remains persistent as a macro asset. Web3 does not disappear.
Apart from that, Novogratz believes that the metaverse will become more prominent in the coming years and more people will spend money in the metaverse. When asked if the current market crash is similar to what we saw in 2018 and 2014, Novogratz said every bear market is different. Novogratz used the following statements about the collapse:
I hope we saw the worst of it last weekend. If I knew where inflation was going to be in the next two quarters, I would be more sure of that. But if you had a sell order, you most likely sold – Ethereum dropped to $890, Bitcoin dropped to $17,900. I think now you’re going to see the triage after big crashes where people are a little less risky or a lot less risky. So, most likely, a major recession is coming. This is not terrible for crypto, but terrible for the economy. It’s also not good for the stock market.
How long will the downturn last, according to cryptocurrency billionaire Novogratz?
Novogratz said that the overall recession sentiment was also affected by crypto, and that “crypto is in a recession” at the moment. When asked how long this recession would last, Novogratz replied:
I wish I had a crystal ball. My instincts say 18 months, maybe a little shorter. Because the Fed will have to suspend interest rate hikes until the fall. I think this will put people at ease to start rebuilding.
Finally, Novogratz mentioned that there are many factors behind the market decline. “You can blame the Fed. You can blame COVID and you can blame the Russian war. It all came together and this allowed the bubble to dissolve much faster,” he said.
