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Mike Novogratz Says Most Crypto Hedge Funds Will Go Bust

Wed, 06/08/2022 - 16:13
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Alex Dovbnya
Mike Novogratz has gloomy prediction for cryptocurrency-oriented hedge funds
Mike Novogratz Says Most Crypto Hedge Funds Will Go Bust
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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.

Bitfinex Delists MegaDogecoin (MDOGE) Pairs
 Novogratz also complained about the U.S. Securities and Exchange Commission's reluctance to approve a spot-based Bitcoin exchange-traded fund, describing its stance as "crazy."

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at