Galaxy Digital CEO Mike Novogratz is updating his perspective on the future of the current bear market and crypto markets in general.
Novogratz says in a Yahoo Finance interview that Bitcoin (BTC) and other crypto assets are likely to recover once the Federal Reserve stops its monetary tightening measures.
According to the CEO of Galaxy Digital, the crypto market sell-off was caused by the Federal Reserve raising interest rates.
“Since the Federal Reserve has decided to try to squash inflation by aggressively raising rates, the most aggressive rate hike in our lifetime, Bitcoin was sold with other assets. Actually, it is done better than most.
I think if you finally get the pause, you will start to see Bitcoin recover. Bitcoin and all cryptocurrencies.
Are we gonna get the break? In a moment, yes.”
On when the cryptocurrency crisis might end, Novogratz says that the prevailing bear market could last up to six more months.
“You know, the bear case is that we have two to six months of this pain left. The bull case is that the market starts to break down. And we’re seeing a lot of breakage. Not necessarily in crypto but in the rest of the world.”
According to the CEO of Galaxy Digital, sellers in the cryptocurrency market are practically exhausted.
“Crypto is interesting because three months ago, after the big selloff and deleveraging, most of the people who needed to sell sold.
And as you have seen, the price is much more moderate. Things take off when there’s a good story and sell again when the story wears off.
And therefore much less activity in crypto, much less for sellers. But also far fewer new buyers.”
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