- Crypto veteran, Mike Novogratz is convinced the latest crypto crisis won’t be detrimental to the industry.
- The hurdles, according to him may make investors prioritize how they engage with the industry.
The impact of the ongoing crisis in the crypto market particularly the recent implosion of the FTX Derivatives Exchange has been downplayed by veteran industry executive Mike Novogratz. Weighing in on the current events in the industry, Novogratz said the current liquidity crisis between Digital Currency Group (DCG) and its subsidiary, Genesis alongside other embattled firms will play out over the next quarter.
“The outlook for #crypto is not horrible but it’s not great. We’ve got regulatory headwinds we didn’t have before. People are going to cut costs and survive this transition period,” says @novogratz. “Crypto is not going away. It’s a pretty clean market right now.” pic.twitter.com/k57ITlRFOV
— Squawk Box (@SquawkCNBC) January 10, 2023
Speaking in an interview with CNBC, Novogratz said while the DCG strain is “not good news,” it won’t “include a lot of selling.”
There has been clear evidence that the market might be recovering from the underlying impact of these collapses with the recent price run as seen since the beginning of the year. The combined digital currency market cap surged back above the $800 billion resistance and is pegged at $856.92 billion, up 0.89% over the past 24 hours.
This growth was fueled by the 3.60 percent weekly growth in Bitcoin which pegged the top coin at a price of $17,420.96. Ethereum is also up 6.69 percent to $1,333.11 within the same time frame according to our data. With these recent price upshoots, Novogratz appears to be talking from an informed position.
In the interview, he acknowledged that though the outlook for crypto is bad at this time, the broader industry is not going away.
According to his tweet;
“The outlook for #crypto is not horrible but it’s not great. We’ve got regulatory headwinds we didn’t have before. People are going to cut costs and survive this transition period,” says @novogratz. “Crypto is not going away. It’s a pretty clean market right now.”
Novogratz View Suggests Investors May Renew Their Focus
With the current outlook of the crypto ecosystem, the focus for investors is bound to shift remarkably from investing in any venture that looks promising to those who are promising but primarily focused on building the infrastructure that can help power up the future of the industry.
Galaxy Digital has been a major player in the digital currency ecosystem and its footprint spreads across the industry. Besides the role of Mike Novogratz serving as a renowned advocate and promoter of Bitcoin and decentralized technology, Galaxy Digital also invests in emerging projects and makes a number of targeted acquisitions.
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The company’s enthusiastic view of the industry has pushed it to reveal that there may be more venture funding for this new year, despite the distrust fueled by FTX Derivatives Exchange. The company is billed to continually double down on its earlier offerings in the space, including the facilitation of the first Over Counter transaction in partnership with Goldman Sachs.
As a relatively fragile industry, Novogratz has helped in suturing the industry in such as way that confidence tweets and projections have helped restore confidence amongst investors across the board.
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