“More Pain to Come” for Bitcoin, Crypto: Galaxy Digital CEO

Paigambar Mohan Raj
Source: CrowdWisdom360

In a recent interview with CNBC’s Squawk Box, Mike Novogratz, popular investor, and CEO of Galaxy Investment Partners spoke about the current crypto market situation. According to Novogratz, cryptocurrencies will continue to be coupled with the NASDAQ for the short time.

He said,

“Crypto is very correlated to the Nasdaq my opinion is that over time that correlation will break down. We’ve already seen the beta of the breakdown. The Nasdaq falls 3%, crypto falls 9%. But I do think there’s more pain to come.”

Novogratz thinks that the NASDAQ could reach 12,000 after which it could bounce, but then could hit 10,500 in a couple of weeks. Although crypto is “very correlated to the NASDAQ”, Novogratz thinks that this correlation will eventually break down. However, he says,

“But I do think there’s more pain to come.”

Novogratz says that the current scenario differs from Covid’s in that there is no huge inflow of capital to fuel the v-shaped recovery.

Additionally, Galaxy Digital reported a loss of $111.7 million in the first quarter of 2022, which is a considerable drop from last year’s $858.2 million profits.

The company’s quarterly financial report for the months of January to March 2022 showed the aforementioned net loss, which was mostly due to the crypto market’s continued volatility.

The asset management section of Galaxy, Galaxy Digital Asset Management (GDAM), reported $2.7 billion in assets under management, with $2 billion in Galaxy Fund Management products and $735 million in the Galaxy Interactive fund. This is more than double the $1.27 billion reported a year earlier, but it is a 5% decrease from Q4 2021.

The crypto markets have witnessed liquidations of about $1.12 billion. At press time Bitcoin was trading at $31,393.53, down -6.9% on the daily charts, and -19.7% on the weekly charts.