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Galaxy Digital’s Mike Novogratz says that the outlook for crypto is not looking great at the moment.
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More companies will cut costs to survive this bear period, he added.
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He previously stated that crypto is facing a deficit of trust.
The outlook for crypto is not looking great at the moment
Mike Novogratz, the CEO of Galaxy Digital, told CNBC Squawk Box in a recent interview that the outlook for crypto is not horrible as many people believe it to be. However, he added that the outlook is not looking great either.
“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
He stated that;
“2022 was a grand washout for growth stocks and for crypto. So, anything associated with it got hammered, as many of the crypto stocks did.”
The price of Bitcoin and other leading cryptocurrencies is down by more than 65% from the all-time high they attained in November 2021. He stated that;
“The outlook for crypto is not horrible, but it’s not great. We’ve got regulatory headwinds we didn’t have before. We have time to heal and rebuild the narrative. People are going to cut costs and survive this transition period. Crypto is not going away. What is interesting is the price of Bitcoin and Ethereum have held steady over the last few months. The prices have actually gone up in the last few days. It’s a pretty clean market right now.”
The other market activities will play out soon
There is an ongoing battle between Gemini, the cryptocurrency exchange owned by the Winklevoss twins, and DCG-owned Genesis. Genesis currently owes users of crypto exchange Gemini’s Earn product some $900 million.
Earlier this month, Cameron Winklevoss slammed DGC’s CEO, Barry Silbert, over bad-faith stall tactics. Novogratz said;
“There are still some overhangs in the market like DGC, Genesis, and Gemini. That will play out in the next quarter. That’s not going to be great, but I don’t think it would include a lot of selling. It’s just not good news.”
In November, Novogratz said that there was a crisis of confidence in the market and it would be tough for the market to recover soon.