• Michael Novogratz, founder of US-based crypto financial services firm Galaxy Digital Holdings, argued that the events of 2022 have “cleansed” the industry and that it is now time to survive the “transition period”.
• Novogratz warned that 2023 is a year to “survive” and noted that the outlook for crypto is not great due to regulatory headwinds and the need to rebuild narrative.
• Despite this, Novogratz believes that crypto is not going away in the long-term and that prices of Bitcoin (BTC) and Ethereum (ETH) have held “pretty steady” over the last couple of months and have gone up in the last few days.
Michael Novogratz, the founder of the US-based crypto financial services firm Galaxy Digital Holdings, recently suggested that the events of 2022 have ‘cleansed’ the industry and that it is now time to survive the “transition period”. Talking to CNBC on Tuesday, Novogratz said that 2022 was a “grand washout” for the crypto industry, explaining that everything that had high costs and shrinking revenues “got hammered”.
Novogratz went on to say that “the outlook for crypto is not horrible, but it’s not great.” He noted that, “We’ve got regulatory headwinds that we didn’t have before, we’ve got time to heal and rebuild narrative, and so people are gonna cut costs and survive this transition period.”
In spite of this, Novogratz believes that crypto is not going away in the long-term. He argued that the prices of Bitcoin (BTC) and Ethereum (ETH) have held “pretty steady” over the last couple of months and have gone up in the last few days. At 9:10 UTC on Wednesday morning, BTC was up 1% in a day and 4.5% in a week, trading at $17,442. At the same time, ETH was changing hands at $1,334. It was up less than 1% over the past 24 hours and nearly 10% in a week.
Novogratz warned that 2023 is a year to “survive”, and that there are still “some overhangs” such as DCG, Genesis, and Gemini, which will play out in the next quarter. He suggested that it is now time to cut costs and survive this “transition period”, in order to ensure the success of the crypto industry.
The CEO also noted that the crypto industry has been “pretty clean”, and that this will allow for more good news to come in the future. He believes that, in the long-term, crypto is not going away and that there is potential for the industry to thrive in the future.
Overall, Michael Novogratz’s comments on the future of the crypto industry have been optimistic, yet cautious. He believes that now is the time to cut costs and survive the “transition period”, in order to ensure that the industry is successful in the future. His outlook for the industry is that, long-term, crypto is not going away and that there is potential for the industry to thrive.