Galaxy Digital CEO, billionaire Mike Novogratz, recently appeared on a CNBC show. cryptocurrency He said prices could go down even more.
“The Decline in Cryptocurrencies May Continue”
Novogratz said:
“We will watch a horizontal course, can we go even lower? Of course we can fall.”
According to the billionaire’s “instinct”, “floating sideways” can be followed until the FED is seen to reverse its harsh monetary policy.
Novogratz claims that the cryptocurrency industry has entered a major correction period due to the use of “excessive leverage”. Novogratz adds that centralized crypto companies such as Celsius, BlockFi and Three Arrows Capital have enormous leverage.
The above-mentioned three companies are among the biggest losers in the ongoing market crash so far, bringing the entire industry to the point of collapse.
Crypto Market Leverage Reduction Process Continues According To Novogratz
Still, Novogratz says the leverage reduction process is not yet fully completed. “We feel like we’re in 90% of this de-leverage process,” Novogratz added.
The problem, of course, could be seen as the crypto’s lack of bullish power that could push prices up by attracting new capital. Now that the phrase “protection from inflation” is no longer valid, of bitcoin it needs to find another attractive formula to attract new buyers.
In late 2021, Novogratz correctly predicted that Bitcoin would underperform in the first quarter due to the high correlation with the tech-heavy Nasdaq 100. In January, the billionaire made a statement that the world’s largest cryptocurrency is “pretty vulnerable”.
*Not investment advice.