Galaxy Digital Holdings CEO Mike Novogratz believes Digital Currency Group’s (DCG) ongoing crisis won’t affect crypto prices significantly
In an interview on CNBC’s Squawk Box, Mike Novogratz said he expects the current crisis facing Digital Currency Group (DCG) and Genesis, won’t “include a lot of selling.” Therefore, the issue won’t have a dramatic impact on crypto prices previously affected by FTX bankruptcy.
Although Galaxy Digital CEO acknowledged that the outlook for crypto is not too bright, it is also “not horrible”. Novogratz assumed the crypto market is not going anywhere and will get over the stress during the next quarter.
DCG is a major crypto player that owns and operates Grayscale Investments, the world’s biggest digital asset manager, institutional lending company Genesis, advisory company Foundry, crypto exchange Luno and crypto media company CoinDesk.
We have recently reported that DCG has closed its wealth-management division, HQ Digital. Joining the growing list of troubled industry giants, DCG threatens to disrupt the crypto market if forced to sell sizeable positions in its Grayscale Bitcoin Trust (GBTC) and other crypto-related trusts.
However, Novogratz notes that major cryptocurrencies such as Bitcoin and Ether have shown strength and resiliency despite a lot of bad news recently hitting the sector. Moreover, BTC price has even returned to the $17,500 mark for the first time in almost a month.
As many investors have sold or reduced their crypto leverage in recent months, now the market is “pretty clean,” says the expert.