Galaxy Digital CEO Predicts The Bear Market of Bitcoin and Other Crypto Will Last.
On Yahoo Finance Live, Galaxy Digital Founder & CEO Mike Novogratz speaks with Brad Smith and David Hollerith about the impact of a Fed pivot on bitcoin, as well as the outlook for assets in a bear market.
Crypto Are Likely To Rally After The FED Halt Its Tightening Measurements
During the interview with Yahoo, Novogratz said that crypto assets such as Bitcoin (BTC) are likely to rally once the Federal Reserve pauses its monetary tightening measures.
A hike in interest rates by the Federal Reserve caused the crypto market selloff, according to Galaxy Digital’s CEO.
“Since the Fed has decided to try to smash inflation by raising rates aggressively, the most aggressive rate-raising in our lifetime, Bitcoin sold off with other assets. It’s actually done better than most,” said Novogratz.
He added, “I think if you finally get the pause, you will start seeing Bitcoin pick back up. Bitcoin and all cryptocurrencies. Are we going to get the pause? At one point, yes.”
The Bear Market Could Last for The Next Six Months
According to Novogratz, the current bear market could last up to six months before it ends, saying “You know the bear case is we’ve got two to six months left of this pain. The bull case is the market starts breaking.”
He added, “And we’re seeing a lot of breakage. Not necessarily in crypto but in the rest of the world.”
A major part of the crypto market’s sellers are exhausted, according to the CEO of Galaxy Digital.
“Crypto’s interest is that three months ago, after the big selloff and the deleveraging, most people that needed to sell sold,” he explained.
He detailed, “And so you’ve seen the price is much more muted. Things take off when there’s a good story and they sell right back off when the story goes away. And so a lot less activity in crypto, a lot less for sellers. But also a lot less new buyers.”