• Mike Novogratz, the founder of Galaxy Digital Holdings, argued that the events of 2022 have ‘cleansed’ the industry and that it is now time to survive the “transition period”.
• He warned that 2023 is a year to “survive” and that the outlook for crypto is “not great” due to regulatory headwinds.
• He noted that the prices of Bitcoin (BTC) and Ethereum (ETH) have held steady and have gone up in the last few days.
Michael Novogratz, the founder of the US-based crypto financial services firm Galaxy Digital Holdings, spoke to CNBC on Tuesday, arguing that the events of 2022 have ‘cleansed’ the industry and that it is now time to survive the “transition period”. According to Novogratz, 2022 was a “grand washout” for the crypto industry, as those with high costs and shrinking revenues “got hammered”. He warned that 2023 is a year to “survive”, as there are regulatory headwinds that had not been present before.
Not all the news is bad, however. He noted that the prices of Bitcoin (BTC) and Ethereum (ETH) have held steady and have gone up in the last few days. At 9:10 UTC on Wednesday morning, BTC is up 1% in a day and 4.5% in a week, trading at $17,442. At the same time, ETH is changing hands at $1,334. It is up less than 1% over the past 24 hours and nearly 10% in a week.
Novogratz went on to say that the industry needs to cut costs and “heal and rebuild narrative” in order to survive the transition period. He believes that long-term, “crypto is not going away”. He also suggested that new presales may come in 2022 to potentially provide the industry with the next 100x crypto.
Overall, while the market may be “pretty clean” according to Novogratz, there are still some overhangs that could affect the industry in the next quarter. While the outlook may not be great, Novogratz is confident that the crypto industry can survive the transition period and come out stronger in the end.