Mike Novogratz Remains Bearish on Crypto as Bitcoin Drops to 52-Week Low

During Galaxy Digital's recent earnings call, CEO Mike Novogratz predicted that there is more "damage to be done" when talking about the market.

The billionaire believes that crypto will remain extremely correlated with the Nasdaq 100 Index. He is also "pretty confident" that Bitcoin will bounce back once equities find "some kind of bottom."

Cryptocurrency investors, however, should not expect a speedy recovery. "I don't think it will be in the next two months," Novogratz said.

Galaxy Digital reported a $111.7 million loss in the first quarter due to declining cryptocurrency prices.

 Bitcoin closed the quarter down 2%, but the largest cryptocurrency is on track to fare worse than in the second quarter of 2022. Earlier today, the crypto king plunged to a 52-week low of $32,637. The cryptocurrency is down 51.94% from its all-time high of $69,044.77, which was recorded on Nov. 10.

According to data provided by IntoTheBlock, the percentage of Bitcoin addresses in profit has dropped below the 50% level for the first time since the pandemic-induced crash that took place in March 2020.

The stock market has also had a rough start to the week, with the Dow losing more than 400 points. The stock market also closed in the red on Friday.

The Federal Reserve's hawkish policy remains the top concern among investors. Even though the central bank has so far ruled out 75 basis point hikes, interest rates are expected to keep surging this year, which will make borrowing funds more expensive.