Galaxy Digital CEO Mike Novogratz said in an interview with CNBC that he does not believe in the possibility of reducing the price of the first cryptocurrency to $13,000.
“Can we go lower? Of course we could. It feels that we’re 90% through that deleveraging,” says @novogratz on #crypto. “The problem is for you to go much higher, you need the narrative to go much higher and you need new capital to come in.” pic.twitter.com/aoWFcorWhX
— Squawk Box (@SquawkCNBC) July 7, 2022
“Can we fall lower? Of course. There is a feeling that we have overcome this deleveraging by 90%. […] The problem is that further growth requires more faith and new capital,” he said.
According to Novogratz, centralized companies in the cryptocurrency market had too many positions with leverage. This led to the bankruptcy of some of them.
He also predicted a sideways trend in the digital asset industry until Fed will not stop raising the base rate.
Earlier, Tron founder Justin Sun said that the current deleveraging process has “passed the worst period.”
Recall that in June, Novogratz predicted a continuation of the recession in the cryptocurrency market for 18 months. In his opinion, the industry will see the first signs of recovery after the easing of the Fed’s monetary policy.
That same month, American rapper Snoop Dogg stated that the current crisis would benefit the digital asset market and weed out those who have “abused opportunities.”
Rockefeller International CEO Ruchir Sharma noted that bitcoin needs to get rid of excess leverage in order to become sustainable again.
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