According to the Galaxy Chief, the prevailing sentiment within the crypto space is not horrible as the market is currently considered clean.
Mike Novogratz, the American investor, and CEO of investment firm Galaxy Investment Partners, recently noted that his optimism about the cryptocurrency industry remains unfazed despite the massively bearish past year. According to Novogratz, his confidence is based on the belief that the markets will recover from this phase.
The Galaxy Chief made these remarks in an interview with Andrew Sorkin on a CNBC Squawk Box episode today. Sorkin highlighted concerns surrounding Coinbase’s recent 20% workforce slash amid the company’s underperforming stock (COIN) which is currently 83% down in the past year. The journalist sought Novogratz’s position on the company’s woes and the implications on the broader crypto scene.
In response, Novogratz mentioned that it is not uncommon to see companies built around risk assets suffer, as the previous year dealt a blow to them. He noted that Coinbase Chief Brian Armstrong is making a rational decision with the team layoffs as it is necessary to cut costs to survive in this “transition period.”
He then expressed his optimism for the crypto scene. “The outlook for crypto is not horrible but it’s not great. We’ve got regulatory headwinds that we didn’t have before. We’ve got time to heal and rebuild the narrative […] Crypto is not going away,” Novogratz remarked.
Speaking further, he highlighted the newly-found strength within the broader crypto market that has seen Bitcoin (BTC) and Ethereum (ETH) respectively surge above $17K and $1.3K, noting that most of the selloffs and deleveraging have already been priced in. According to him, the market is “pretty clean” at this point.
Notwithstanding, Novogratz acknowledged the looming market-wide angst that could ensue should the situation surrounding Gemini, Genesis, and DCG escalate further. He believes there will be a market impact in the next quarter, but the impact will be minimal as there won’t be a lot of selloffs.
Novogratz Remains Unfazed in the Winter
Mike Novogratz remains one of the most optimistic public figures in the crypto space. Despite the current trying times, the 58-year-old American investor believes the markets will stage a comeback. Last month, he asserted that Bitcoin will recover from this bearish cycle, citing past performances in previous bear markets.
Novogratz’s optimism is also evidenced in Galaxy’s behavior during the Crypto Winter. The investment firm purchased the Helios Bitcoin mining facility from Argo Blockchain last month for $65M despite the Winter. The company also bought GK8, an Israeli self-custody firm previously owned by bankrupt lender Celsius.
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