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Galaxy Digital’s Mike Novogratz Warns that 66% of Crypto Hedge Funds Will Go Out of Business

Key takeaways:

  • Galaxy Digital’s Mike Novogratz has actually stated that two-thirds of crypto hedge funds will stop working.
  • Mr. Novogratz mentioned the continuous worldwide macroeconomic environment as the core factor 66% of crypto hedge funds will fail.
  • He likewise explained that the current market sell-off due to UST’s collapse is an extra aspect towards crypto hedge funds closing store.

Galaxy Digital’s creator and CEO, Mike Novogratz, has actually anticipated a rough roadway ahead for crypto hedge funds. According to Mr. Novogratz, two-thirds of the existing hedge funds purchased the cryptocurrency market will stop working due to the continuous Bitcoin and crypto bearish market

He spoke at the Piper Sandler Global Exchange and Brokerage Conference on Wednesday, where he discussed that of the approximated 1,900 crypto hedge funds, 66% would fail. He stated:

Volume will decrease, hedge funds will need to restructure.

There are actually 1,900 crypto hedge funds. My guess is two-thirds will fail.

Mr. Novogratz even more described that the crypto hedge funds’ possible collapse would be because of the wider macroeconomic environment starting with the United States Federal Reserve withdrawing its intervention in promoting the economy. Last month’s collapse of TerraUSD (UST) and Terra (LUNA) has actually used extra selling pressure to the crypto markets.

UST, LUNA Not Strong Enough To Handle a Bitcoin Market Downturn.

Concerning UST and LUNA, Mike Novogratz discussed that the job was not strong enough to deal with the results of a Bitcoin bearishness. He discussed:

It wasn’t strong enough to handle the headwinds of Bitcoin rates decreasing, crypto costs decreasing. It was a disastrous loss.

The CEO was amazingly intense and charming and there was an incredible quantity of momentum behind what he was doing.

Galaxy Digital Will Continue to Hire People.

He likewise highlighted that Galaxy Digital would continue to work with intense minds in spite of the continuous Bitcoin and Crypto bearishness.

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