At the Piper Sandler Global Exchange and Fintech Conference, Galaxy Digital CEO Mike Novogratz forecasted that the majority of crypto hedge funds would go belly-up due to declining trading volumes.
The crypto mogul estimates that there are roughly 1,900 of them in existence, which may not be sustainable.
Still, considering the dire state of the industry, Novogratz's forecast may seem too conservative.
Bitcoin continues to struggle to hold the $30,000 mark, and there is an ongoing back-and-forth between bulls and bears.
Novogratz expects the flagship cryptocurrency to reverse course as soon as the U.S. Federal Reserve "flinches."
Yet, the central bank appears determined to continue its aggressive interest rate policy. Lael Brainard, the Federal Reserve's vice chair, recently hinted at another big interest rate increase in September. The Fed is also all but certain to hike rates this summer. As reported by U.Today, the central bank announced a half-percentage-point hike for the first time since May 2000 last month in order to fight inflation.
The Galaxy Digital boss still believes that Bitcoin will remain a relevant crypto asset: "I've got no fear that bitcoin doesn't stay a real macro asset," Novogratz said.
Alex DovbnyaDisclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Dan Burgin
Vladislav Sopov