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Novogratz encouraged crypto traders and investors to have the right risk-management cause of action, suggesting the prudence of pulling back some of your assets from time to time.
Michael Novogratz Believes in Crypto Adoption
Speaking at the Piper Sandler Global Exchange & Brokerage Conference on June 9, the Galaxy Digital CEO opined that while the road ahead would be bumpy for equity and cryptocurrency investors, his optimism for growth in crypto adoption and its role in real-life remains steadfast.
Novogratz, whose company is a financial service and investment management digital assets provider, described Bitcoin as a store of value with an unmatched capacity to remain a “real macro asset.”
According to him, a V-shaped recovery is almost impossible, speaking about crypto and equity markets. Rather, Novogratz is optimistic about a mix of market fluctuations in all directions before a fresh theme takes form on the macroeconomic sector and interest rates.
“The US Federal Reserve increasing interest rates to lower inflation is causing hiccups and unpredictability in economic models,” said Novogratz, supporting his theory of a prolonged battle.
Out of almost 1,900 crypto-oriented hedge funds, Novogratz predicts the collapse of two out of every three.
Despite this estimation, the digital CEO expressed his commitment to bringing in additional staff, a move inspired by the influx of talent and enthusiasm for Crypto, saying that “Galaxy is in a very good position to build through this downturn.”
Per Novogratz, he continued that he saw cryptocurrency adoption in the real world and its application in daily living.
Terra’s UST Collapse
On the collapse of the Terra ecosystem, Michael Novogratz says the turn of events was a learning opportunity for players in the crypto space, warning of the dangers of not diversifying one’s portfolio.
Novogratz also encouraged crypto traders and investors to have the right risk-management cause of action, suggesting the prudence of pulling back some of your assets from time to time.
Terra and UST’s “flash-crash,” according to Novogratz, strengthened – among other things – the need to take profits along the way. Previously, Novogratz revealed that Galaxy had taken some profit on some of its investments.
The Galaxy CEO said those expecting a “V” bottom in the market might have set themselves up for disappointment as it would take “restructuring, a redemption cycle, consolidation and renewed confidence” in cryptocurrencies. Novogratz believes that Crypto moves in cycles, and what happened recently was just one of the big ones.