Despite current downswing, crypto markets could “flip next year”: Novogratz
Mike Novogratz, ex-Goldman Sachs partner and founder of Galaxy Digital, is hopeful that the current bear market will bottom out and “flip next year,” according to a report by the Financial Times.
He mentioned that this year had been challenging for Galaxy Digital, a blockchain-centric merchant bank, which he hopes can ride the virtual currency wave and become “the Goldman Sachs of crypto”. He added that this year had not been the best for crypto companies as bears have been taking over the market, stating, “it sucks to build a business in a bear market”.
Another area of concern for Novogratz is the initial coin offering (ICO) market, which had severely shrunk this year due to over-tokenizing and rising number of fraudulent cases. Shares of Galaxy Digital, which offers ICO-related services, have dropped 37 percent since their listing on the Toronto Venture Exchange in early August.
Novogratz remains hopeful for the broader crypto market and predicts that financial institutions will move from investing in cryptocurrency funds to investing in cryptocurrencies by the first quarter of next year.
Next year will also see the launch of Bakkt, a digital assets platform from Inter Continental Exchange (ICE), in January. The exchange is expected to usher in significant institutional interest in the crypto space. Novogratz suggests that this will “flip” the market and trigger positive price movement.
The Financial Times report quoted Tim Swanson, founder of fintech advisory firm Post Oak Labs, suggesting that the Galaxy Digital founder was, “trying to predict something that he has no influence over”.
Novogratz has always been a bull in the crypto space and had earlier predicted that Bitcoin could reach $40,000 this year. At press time, the top crypto was valued at just above $4,000, with many predicting a bottom of $3,000. “It’s easy to get skeptical but there’s something happening. We need to stay very flexible on where things go,” he concluded.
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