Galaxy Digital CEO Mike Novogratz is updating his outlook on the future of the current bear market and the crypto markets as a whole.
Novogratz says in a Yahoo Finance interview that Bitcoin (BTC) and other crypto assets are likely to rally once the Federal Reserve pauses its monetary tightening measures.
According to the Galaxy Digital CEO, the crypto market selloff was caused by the Federal Reserve hiking interest rates.
“Since the Fed has decided to try to smash inflation by raising rates aggressively, the most aggressive rate-raising in our lifetime, Bitcoin sold off with other assets. It’s actually done better than most.
I think if you finally get the pause, you will start seeing Bitcoin pick back up. Bitcoin and all cryptocurrencies.
Are we going to get the pause? At one point, yes.”
On when the crypto downturn could end, Novogratz says that the prevailing bear market could last up to six more months.
“You know the bear case is we’ve got two to six months left of this pain. The bull case is the market starts breaking. And we’re seeing a lot of breakage. Not necessarily in crypto but in the rest of the world.”
According to the Galaxy Digital CEO, sellers in the crypto market are largely exhausted.
“Crypto’s interesting in that three months ago, after the big selloff and the deleveraging, most people that needed to sell sold.
And so you’ve seen price is much more muted. Things take off when there’s a good story and they sell right back off when the story goes away.
And so a lot less activity in crypto, a lot less for sellers. But also a lot less new buyers.”
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Source: https://dailyhodl.com/2022/10/13/billionaire-mike-novogratz-forecasts-how-long-the-bitcoin-and-crypto-bear-market-will-last/