Founder and CEO of Galaxy Digital company Mike Novogratzthinks that an economic recession will follow after the current crypto recession.
Koinfinans.com As we previously reported, in a recent interview with New York Magazine, the crypto billionaire revealed that he thinks the US can cope with an economic downturn by the end of 2023.
“My instinct is for 18 months, maybe a little longer because the FED will have to suspend their ‘rate hikes’ until the fall and I think the situation will put people at ease to start rebuilding.”
Mike Novogratz also said, decentralized finance (DeFi) He shared his prediction that there will be regulatory pressure on him.
“DeFi has mostly worked. It’s just much less valuable. CeFi is really where the big losses are. [merkezi finans] and in its strange combination of DeFi.
Celsius and BlockFi were black boxes where investors put their money and then do whatever they want with it. They were not in the chain. Before you got into it, you didn’t know what leverage was. You didn’t know what an asset-obligation mismatch was. They borrowed short and loaned long. Those are two ways to die a sudden death in the markets.”
Mike Novogratz admits that Galaxy Digital made the mistake of “staying too long” in crypto assets. However, he states that other crypto companies are making an even bigger mistake by taking on more credit risk than they should.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.