• Michael Novogratz, founder of Galaxy Digital Holdings, argued that the events of 2022 have ‚cleansed‘ the industry, and it is now time to survive the ‚transition period‘.
• He advised that 2023 is a year to ’survive‘ and that the outlook for crypto is not great due to regulatory headwinds and the need to rebuild narrative.
• Novogratz also suggested that long-term, crypto is not going away, as Bitcoin and Ethereum prices have held steady and gone up in the last few days.
Michael Novogratz, the founder of the US-based crypto financial services firm Galaxy Digital Holdings, recently spoke to CNBC about the cryptocurrency industry and the events of 2022. He argued that the events of 2022 have ‚cleansed‘ the industry and that it is now time to survive the „transition period“.
Novogratz stated that 2022 was a „grand washout“ for the crypto industry, explaining that everything that had high costs and shrinking revenues „got hammered“. In addition, 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“.
As a result, Novogratz warned that „2023 is a year you wanna survive“. He also said that the outlook for crypto is not horrible, but it’s not great. This is due to regulatory headwinds that the industry has not faced before, as well as the need to heal and rebuild narrative. He noted that people are going to need to cut costs and survive this transition period.
Nevertheless, Novogratz suggested that long-term, „crypto is not going away“. Bitcoin and Ethereum prices 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 is up 1% in a day and 4.5% in a week, trading at $17,442. At the same time, ETH is changing hands at $1,334. It is up less than 1% over the past 24 hours and nearly 10% in a week.
Although the market is „pretty clean,“ as Novogratz said, there are still „some overhangs – DCG, and Genesis, and Gemini – that will play out in the next quarter, that’s not gonna be super bullish but it’s not gonna be super bearish either“. He concluded that 2022 was a ‚cleansing‘ year for the cryptocurrency industry and that it is now time to focus on surviving the transition period.