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The CEO of Galaxy Digital, Mike Novogratz, has said that Bitcoin and Ethereum are here to stay. He said that the two largest cryptocurrencies would not go anywhere despite the growing negative sentiment across the crypto industry.
Mike Novogratz says Bitcoin and Ethereum are here to stay
While speaking during an interview with CNBC’s Squawk Box, Novogratz said that he did not see a future where Bitcoin and Ethereum would go under. He noted that these two assets would remain strong despite the low confidence levels across the crypto markets.
Galaxy Digital is a cryptocurrency investment company. The firm has not been without losses this year following the bear market that has seen several projects and crypto firms going under. Novogratz was a big believer in Do Kwon’s Terra Luna and even had a tattoo representing his commitment to the project before its astonishing collapse in May.
“We certainly have a crisis of confidence in this market, and we’re not out of the woods yet. There’s a lot of daisy chain effect going on, and people had exposure to Three Arrows Capital, and people had exposure to FTX, and FTX was a major player. So it’s going to take a few weeks for people to just even get their balance back,” Novogratz said.
He argued that Bitcoin would not go away. According to him, around 150 million people have chosen Bitcoin as a store of value. Moreover, the Bitcoin community kept growing as people tapped into how transactions can be verified using cryptography. Because of this, there was no way that Bitcoin, Ethereum, and blockchain would go away.
Crypto market recovery is on the way
Novogratz has also added that while he anticipates a recovery in the cryptocurrency industry, there would be a slow uptrend, and the recovery would not be instantaneous.
This is somewhat different from how the cryptocurrency market behaves. The cryptocurrency market is known for intense volatility, which can see the prices of crypto assets swiftly losing or gaining value. However, the volatility has cooled down significantly.
Novogratz also added that there would be fresh funding in the sector. He pointed to the CEO of Ark Invest, Cathie Wood, saying that she, alongside other institutional investors, would inject capital into the sector.
However, he noted that the recovery would not be easy and would take a relatively long time. One of the things that the sector would be needed to do is to rebuild trust levels. The collapse of the FTX exchange has dented trust levels in the cryptocurrency sector, as the exchange was one of the largest globally.
Novogratz said centralized companies would be forced to do things differently and ensure that trust is brought back. Some efforts are already underway to make this happen. Binance, the largest centralized exchange by trading volumes, announced it would set up an industry recovery fund to support distressed crypto companies affected by the FTX collapse.
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