Galaxy Digital CEO Mike Novogratz said that many crypto hedge funds will go bankrupt due to declining trading volumes.
Novogratz thinks roughly 1900 hedge funds will go bankrupt.
Novogratz’s view is not surprising given the current state of the industry.
Bitcoin continues to struggle to hold the $30,000 level. There is an ongoing struggle between bulls and bears.
Novogratz thinks that the leading cryptocurrency could turn things around if the Fed pulls back.
However, the Fed seems insistent on continuing its aggressive interest rate policy. Fed vice chair Lael Brainard recently indicated that there could be a big rate hike in September. It is unclear whether the institution will raise interest rates this summer.
Novogratz also complained about the SEC’s reluctance to consider a spot-based Bitcoin ETF, saying the situation was “crazy”.
