Mike Novogratz Reveals Condition That Will End The Crypto Bear Season
Galaxy Digital CEO Mike Novogratz has revealed one catalyst that he believes will stop the current bear season in the cryptocurrency industry. During an interview with Bloomberg TV, Mike Novogratz was asked what would get cryptos out of the recent downturn, and he replied, saying, the macro-ecosystem.
According to Mike Novogratz, digital assets will hope for an improvement in global macro conditions and innovations on the blockchains to jump out of the bearish movement. “For Bitcoin, these macro-economic factors will determine the end of the bear season.”
He continued by saying, “But for the Ethereum chain and other layer-1 and layer-2 blockchains, what’s built on them will be an inevitable feat that will change our way of life. Those innovations will be key to lifting the native tokens of these projects out of the current bear season.”
Novogratz added, “there’s a massive amount of venture capital that keeps coming into the crypto space. Over $5 billion was recorded last quarter, while $9 billion was recorded in the quarter before.
“If you check recent data, you will see that the top players in traditional finance, such as Citadel and JPMorgan, Bank of New York, and BlackRock, are making significant investments into this innovative technology,” he added. The Galaxy Digital CEO also predicted that there would be tokenization of assets like we have seen in the form of stablecoins digital currencies.
“The story continues to be exciting. However, I think the macro will need to catch fire first before other people get in because there’s still a correlation.” Novogratz envisions that when the crypto market starts rising again, those crypto asset classes will give investors huge returns, provided they invest correctly.
Mike Novogratz’s Previous Comments About The Crypto Bear Market
The Galaxy Digital CEO had previously shared his thoughts on how long the current bear season will last. During a Yahoo Finance interview, he stated that BTC’s price and other cryptocurrencies would likely increase immediately after the Federal Reserve pauses its monetary tightening measures.
According to Mike Novogratz, the massive sell-off of cryptocurrencies by Investors and traders was because of the hiking of interest rates by the Federal Reserve. He said the Federal Reserve decided to reduce inflation by increasing rates aggressively.
However, their actions turned out to be the most aggressive rate hiking in history. Hence, there were massive sell-offs of crypto tokens, including BTC.
If the Fed stops the rate hikes, it will positively impact global crypto market prices. However, the current bear season could still last up to six more months.
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