- The cryptocurrency market’s ship is wobbling in the waters of price fluctuation right down as it has witnessed quite bearish trends in the recent past.
- The majority of hedge funds that invest in virtual currencies will fail because of the current market downtrend, thinks Galaxy Digital CEO.
- The flagship crypto-asset BTC is currently trading at $30,511 and is down by around 0.20% in the last twenty-four hours.
The overall cryptocurrency market has witnessed a lot of bearish trends lately, along with quite a lot of volatility. A lot of significant bulls are making predictions concerning the hedge funds that invest in digital assets.
According to a recent report by Bloomberg the CEO of crypto investment firm Galaxy Digital and former hedge fund manager, Mike Novogratz thinks that the majority of hedge funds that invest in virtual currencies will fail because of the current market downtrend.
Furthermore, the CEO also highlighted while Speaking at the Piper Sandler Global Exchanges & Brokerage Conference held in New York, Volume will go down, and hedge funds will have to restructure. And that there are approximately 1,900 crypto hedge funds. His guess is two-thirds will go out of business.
His views are that the continuous slump in the prices of digital assets over the past six months can be attributed to the market’s reaction to the U.S. Federal Reserve’s stimulus withdrawal.
It is indeed true that the crypto space has seen instances like that of Terra meltdown off late, which left everyone shocked and some investors with considerable losses. It is to look forward to when the current bearish trends would start to recover. Although some crypto entities predict that it would last at least this year.
Some significant crypto assets have been down by a bit of percentage since the last week while some are performing better.
At the time of writing, the crowned cryptocurrency Bitcoin (BTC) is trading at $30,511 with a market cap of $581,623,907,983 and is down by around 0.20% in the last twenty-four hours.
Source: https://www.thecoinrepublic.com/2022/06/09/galaxy-digital-ceo-mike-novogratz-majority-of-hedge-funds-might-fail/