Galaxy Digital CEO Mike Novogratz says that despite massive sell-offs across a broad range of cryptocurrencies, the story of crypto has not changed and “the crypto revolution has happened.” While viewing the current market as a “liquidation event” and a setback, Novogratz still believes in the long-term adoption of bitcoin.
Crypto Revolution Amid ‘Liquidation Event’
Mike Novogratz shared his view on the crypto market in an interview with CNBC this week. He calls the bitcoin plunge a “liquidation event” that feels like capitulation.
The Galaxy Digital CEO has long been pro-bitcoin. In his view, recovery will take some time. “Humpty Dumpty never gets put back together in two days … when he cracks,” he opined. “It’s going to take a while. The market will consolidate. It will find a bottom somewhere. I’m hoping it’s close to here.” However, Novogratz emphasized:
The story hasn’t gone anywhere. This crypto revolution has happened, but these are certainly setbacks for the wallets and for the investor base. People lost a lot of money, so they’ll dust themselves off.
Commenting on a recent JPMorgan research claiming that investors are moving away from bitcoin into gold, Novogratz remained optimistic on the long-term adoption of bitcoin.
“I see a movement,” he further shared, adding that he was out with two bank CEOs last month and both were fascinated with decentralized finance (Defi). “I just see an inexorable move from financial institutions and tech companies into the crypto space,” he affirmed.
Novogratz pointed to several factors behind the falling price of bitcoin in recent weeks, including comments from Tesla CEO Elon Musk regarding bitcoin mining’s energy usage after Tesla decided to stop accepting bitcoin for payments.
The Galaxy Digital executive concluded:
A lot more people own crypto. Crypto has seeped into pockets all over our society and you had a confluence of events — a combination of tax day, Elon Musk tweets, whatnot, where you started breaking down the positivity in the price action, and now we’ve got a liquidation event.