Mike Novogratz is an American billionaire and CEO of Galaxy Digital. He recently shared his views on crypto assets, particularly Bitcoin, in what seems to be a tale about impending dark times that offers a glimmer hope.
Mike Novogratz believes that we are seeing the end to deleveraging
Novogratz was recently asked by CNBC’s SquawkBox show if he saw Bitcoin falling below $13,000. Although Novogratz, a 57-year old investor, denied such claims, he said that he believes the asset will continue to fall beyond the recent lows in crypto space.
Novogratz stated, “This is a story as old as the tide, and when it went out, we saw lots and lots of excess leverage at centralized cryptocurrency companies,” pointing out the high leverage positions that crypto entities such as BlockFi, Three Arrows Capital, and Celsius Network held, which exposed them to financial problems.
Many of the companies that were hit by the bear market’s pains had to resort to deleveraging, a practice that has flooded the crypto world in recent years. Novogratz believes that the deleveraging wave is at its end. He stated that he believes most of the deleveraging has ended.
“Could it be lower?” Novogratz said, “Yes, we could.” He did however mention the possibility that cryptospace could open the doors to the ushering of capital. In which case, he believes there could be a surge of potential investors likely to bring about a ray or hope.
Novogratz sees more applications of Crypto in real life
Novogratz seems to be one of the crypto enthusiasts who have remained steadfast in their belief in crypto, despite the bear market. His pragmatic outlook on the future and state of crypto is what makes him stand out.
Novogratz stated in a recent interview that he believes things will be difficult for both crypto and equity investors. He did mention that crypto adoption will likely grow over the next few years, which could lead to more real-world uses of the technology.
He mentioned that although he doesn’t see a straight path for crypto markets, a new narrative could be the catalyst the space desperately needs to change after years of volatility in the sector.
The Crypto Winter continues to exist, despite the fact that its cold touch has made it so the digital asset prices continue to rise. There is still some blue sky. Bitcoin (BTC), which has gained 13% in the past week, trades at $21,678 as of press time. Ethereum (ETH), which has seen a 22% increase in trading volume over the past seven days, is now trading at $1.2k.