Mike Novogratz, the CEO of Galaxy Digital, a cryptocurrency investment bank, talked about 2018 and the future of cryptocurrencies. He commented about the difficulty that his business passed this year. Novogratz business position suffered as a direct consequence of the drop in bitcoin prices this whole year. He was also affected by the bear market that happened last week.
Mike Novogratz Bear Market Blues
Cryptocurrency day traders suffer from this bear market. Despite this, a trader can diversify with stock options to save his portfolio. But what if your whole business depends on cryptocurrencies? That is the position of Mike Novogratz, the CEO of Galaxy Digital. Galaxy Digital is a digital assets bank, with the possibility of investment. This is what has made it so vulnerable to the cryptocurrency bear market.
But the hurting is not new. Since Q1 Galaxy digital has been posting red numbers that have caused a loss of value in their stock. However, Mike Novogratz has been always very bullish about the future of cryptocurrencies in the long run. On an interview with Financial Times, Novogratz made a mini-review of the cryptocurrency market stance, comparing last year with this year.
“2017 was just fun, it was almost stupid. This year has been challenging. It sucks to build a business in a bear market,”
confirming the woes that he has passed during this hard year for cryptocurrency investors.
However, the bullish character of Michael about bitcoin has a certain base. The truth is that, as Anthony Pompliano said on CNN earlier this week, the cryptocurrency market has been constructed only with the action of retail investors. Mike believes that the next year, there will be a flip in the cryptocurrency market, and institutions will flock to exchanges platforms to invest directly in crypto.
Mike Novogratz believes that institutions like Bakkt and Fidelity will pave the way for cryptocurrency adoption. However, there is still a thing that needs to be addressed for that to really happen. And its name is regulation. The SEC (Securities and Exchange Commission) is doing its work by bringing order to the Initial Coin Offerings space. But it is still too early to say what will happen with the cryptocurrency sphere.
There is still also something of a primal fear that surges everytime that bitcoin drops. there is always a special anxiety that comes from the fear of a global collapse. To conclude, he stated that:
“Anxiety levels go up when crypto goes down. In most traditional business, like Goldman Sachs, you don’t worry. There’s not an existential threat out there.”