Mike Novogratz Explains Why the Crypto Market Became More Resilient

Mike Novogratz – Founder and Chief Executive Officer of Galaxy Digital – thinks cryptocurrencies have been more resilient in the past month because many forced sellers left the industry.

In addition, he spoke about Do Kwon and his problems with numerous law authorities. Novogratz hopes the South Korean could cope with the issues, describing him as a highly intelligent individual.

Crypto Lacks the Energy of the Equity Market

In an interview for Bloomberg, the American billionaire and prominent crypto supporter – Mike Novogratz – opined that the dynamic of the digital asset sector has decreased in the past few weeks. In his view, bitcoin and the alternative coins have become more resilient because there are fewer buyers and fewer sellers at the moment:

“We’re in this weird equilibrium where there are a few buyers, there are a few sellers, and there’s not that energy in the market like you’re seeing in the equity market or the bond market where you have to sell, right?”

Mike Novogratz
Mike Novogratz, Source: Bloomberg

Novogratz believes the crypto market will take off once the Federal Reserve ceases its monetary tightening policies. A week ago, the central bank of the USA increased its benchmark interest rate by another 75 basis points in an attempt to battle the galloping inflation in the country.

In addition, Galaxy Digital’s boss revealed that his firm will slow down future hirings due to the current macroeconomic condition. He predicted that numerous crypto hedge funds won’t survive the turbulence and will halt operations before the year’s end.

Regarding Do Kwon’s Issues

Novogratz was among the keenest proponents of Terra’s native token – LUNA. Earlier this year, he even tattoed the token’s logo on his shoulder, labeling himself as a “lunatic.”

The following collapse of the asset, though, made him rethink his stance. Days after LUNA plunged to virtually zero, Novogratz said:

“My tattoo will be a constant reminder that venture investing requires humility.”

However, he remains fond of Terraform Labs’ Co-Founder Do Kwon, who left South Korea after the crash and whose whereabouts are unknown. The 31-year-old developer was blamed for the massive investors’ losses, which is why several institutions started looking for him.

Earlier this week, the International Criminal Police Organization (Interpol) also joined the hunt, issuing a red notice for him. Shortly after, Do Kwon tweeted that he is “making zero effort to hide” and regularly goes on walks and visits shopping centers.

Novogratz said the South Korean is one of the smartest individuals he has met and wished him success with his law issues.


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