Mike Novogratz Says Most Crypto Hedge Funds Will Close

by in Cryptocurrency News

Mike Novogratz Hedge funds

The Chief Executive Officer of Galaxy Digital, Mike Novogratz says equity and crypto investors will see difficulties. However, he's still positive about the growth of crypto adoption.

Related: Mike Novogratz Predicts Bitcoin to Rise to $500,000

Novogratz finds BTC will continue to be a real macro asset as it's a store of value. During the Piper Sandler Global Exchange Brokerage Conference on June 8, he said he doesn't expect a fast recovery for cryptocurrencies and equity fields. According to the businessman, markets will see further declines, increases and falls till the change of the narration on the macroeconomic field and interest rates.

The Galaxy Digital CEO noted the Fed's increasing interest rates to lower inflation caused market uncertainty, predicting a longer struggle. Novogratz thinks around two-thirds of 1,900 digital assets hedge funds could shut down.

At the same time he isn't worried about Galaxy Digital, saying the company plans to hire more people and isn't seeing lack of talent or excitement in the sector of digital assets. The executive emphasized that Galaxy is in a good state to overcome the downturn.

The optimistic opinion is based on the increase of crypto adoption and real uses. Along with this, the company is keeping signing up more investors.

Commenting on the failure of the Terra ecosystem, Novogratz said the most important lesson is not to keep all the eggs in one place and have efficient risk-management systems.