- Mike Novogratz, CEO of Galaxy Digital, says that 2022 was “a grand washout” for cryptocurrencies and growth stocks.
- Everything in the financial assets industry that was “growth-linked” encountered difficulties in 2022.
- New developments in the industry are leading to substantial adjustments by industry leaders and regular participants.
Mike Novogratz, CEO of Galaxy Digital, says that 2022 was “a grand washout” for cryptocurrencies and growth stocks. In a TV interview, Novogratz noted that it was a year when everything in the financial assets industry that was “growth-linked” encountered difficulties.
Novogratz acknowledged that the outlook for the crypto industry is not horrible, nor is it great. He explained that new developments in the industry are leading to substantial adjustments by industry leaders and regular participants alike.
Some developments mentioned by Novogratz include incoming regulatory headwinds and the ongoing healing process. He noted a developing change in narrative that demands people to cut costs and survive the current transition period.
According to Novogratz, the continued existence of Bitcoin is unquestionable. He was certain that crypto would not go away. He rather explained that the steady price of Bitcoin and Ethereum in the last few months suggests that the market has been cleaned up, despite some overhangs remaining.
The DCG, Genesis, and Gemini crisis is one of the overhangs that Novogratz mentioned. Although this is not favorable news for the industry, he does not think there is much to attach to it. He expects events surrounding the crisis to play out into the next quarter and thinks it will not attract any major selling in the crypto market.
Novogratz elucidated some of his company’s activities that dig deeper into the crypto industry. According to him, Galaxy has recently acquired a mining facility in Texas, adding to a security and self-custody company in Israel. Also, they are not losing sight of 2023 being a year when crypto participants should focus more on survival.
The crypto market plunged into a bear trend shortly after Bitcoin and many other cryptos reached all-time high (ATH) prices. The trend became more established with the arrival of multiple regulatory clampdowns along with intra-industry security issues. The market seems calmer at the beginning of 2023, with Bitcoin and Ethereum already registering small gains.
Several users expect things to change in the coming months based on the same ideology expressed by Novogratz. The market looks purged of impurities, with things set to pick up over time.