Mike Novogratz makes disappointing predictions for crypto-oriented hedge funds
At the Piper Sandler Global Exchange and Fintech conference, Galaxy Digital CEO Mike Novogratz predicted that most crypto hedge funds will go belly-up due to the drop in trading volumes.
Crypto moguls estimate that around 1,900 of them exist, which may not be sustainable.
Still, given the dire state of the industry, Novogratz’s forecast may seem too conservative.
Bitcoin continues to struggle to maintain the $30,000 mark, with a back-and-forth battle between bulls and bears.
Novogratz expects the flagship cryptocurrency to reverse course as soon as the US Federal Reserve “flips”.
Nevertheless, the central bank is determined to continue with its aggressive interest rate policy. Federal Reserve Vice President Lyle Brainard recently hinted at another major interest rate hike in September. The Fed is also set to hike rates this summer. As reported by U.Today, the central bank last month announced a half percentage-point hike for the first time since May 2000 to fight inflation.
Galaxy Digital Boss still believes that bitcoin will continue to be a relevant crypto asset: “I have no fear that bitcoin is not a true macro asset,” Novogratz said.Novogratz also complained about the US Securities and Exchange Commission’s reluctance to approve spot-based bitcoin exchange-traded funds, calling its stance “crazy.”