Mike Novogratz, the American billionaire, and CEO of Galaxy Digital has recently expressed his opinion on the prospects of crypto assets, especially Bitcoin, in what appears to be a tale of impending dark times with a glimmer of hope.
Mike Novogratz believes we’re seeing the end of deleveraging
Speaking in a recent interview on CNBC’s Squawk Box show, Novogratz was asked if he sees Bitcoin plunging below the $13,000 mark. The 57-year-old investor dismissed such claims but noted that he sees the asset dipping further than the lows the crypto space has witnessed in recent times.
“This is a tale as old as time, and when the tide went out, what we saw was lots and lots of excessive leverage at centralized crypto companies,” Novogratz said, pointing out the risky positions crypto entities like Celsius Network, Three Arrows Capital and BlockFi held with high leverages that exposed the firms to financial woes.
Most of the firms hit hard by the pangs of the bear market had to resort to deleveraging – a practice that appears to have flooded the crypto space in recent times. Novogratz, however, believes that the wave of deleveraging is reaching its terminus. “I think most of the deleveraging is out of the system,” he said.
“Could we go lower? Yes, we could,” Novogratz added. Nonetheless, he asserted the possibility of the crypto space opening doors for the ushering in of new capital, in which case, he believes we could see a potential surge likely to bring in a ray of new hope.
Novogratz foresees more real-life application of Crypto
Novogratz appears to be one of those crypto enthusiasts that have retained their firm belief in crypto notwithstanding the current bear market. What makes him stand out, however, is his pragmatic outlook on the state and prospects of the crypto space.
Early last month, Novogratz revealed that he thinks things are going to be a tad bumpy for crypto investors as well as equity investors. Nonetheless, he mentioned that crypto adoption is likely to grow in the foreseeable future, leading to more real-world applications of the technology.
He also mentioned that while he does not foresee a smooth, straightforward pathway for the crypto markets, the emergence of a “new narrative” could be the game changer the space so desperately needs after a series of ups and downs for crypto assets.
The Crypto Winter persists, having made sure the effects of its cold touch are evident in the prices of digital assets. There’s still a bit of blue sky regardless. As of press time, Bitcoin (BTC) trades at $21,678 having gained by 13% the past week. Ethereum (ETH) has surged by 22% in the past 7 days and is currently trading at the $1.2k mark.