Crypto Industry ‚Cleansed‘ in 2022, Time to Survive Transition: Novogratz
• Mike Novogratz argued that the events of 2022 have ‘cleansed’ the crypto industry and that it is now time to survive the “transition period”.
• Novogratz warned that 2023 is a year to “survive” and that the outlook for crypto is not “great”.
•The CEO suggested that, long term, “crypto is not going away”, as the prices of BTC and ETH have held “steady” and have gone up in the last few days.
Mike Novogratz, the founder of the US-based crypto financial services firm Galaxy Digital Holdings, recently argued that the events of 2022 have ‘cleansed’ the cryptocurrency 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”. He noted that there was “a lot of bad news out there” and that those who had a sell, they sold, and those who were leveraged, got out of the leverage – “and so, it’s a pretty clean market right now”.
Novogratz then warned that “2023 is a year you wanna survive”. He stated that the outlook for crypto is not “great” and that there are “regulatory headwinds” that weren’t present before. He noted that this is the time to “cut costs and survive this transition period”. However, he also provided a glimmer of hope, suggesting that “crypto is not going away” in the long-term.
The CEO pointed out 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 also noted that there are still “some overhangs”, such as DCG, Genesis, and Gemini, that will play out in the next quarter, which he believes “is not gonna be great”. However, he still believes that crypto is “not going away” in the long-term.