Michael Novogratz of Galaxy Digital is highly upbeat about the potential of crypto but at the same time he wishes to stay realistic. The Fortress Group’s ex-macro hedge fund manager that crypto exuberance did caught him off guard, and now he is more realistic about the market’s future trajectory.
As far as the potential of cryptocurrencies is concerned, Michael is positive after factoring in all the realistic factors. However, he believes in long term investing as compared to short term trading gains. These comments come from a perennial bull who always looks on the bright sunny side.
Michael Novogratz of Galaxy Digital says crypto is here to stay
Cryptocurrencies can be highly volatile. Thus, it can be quite tempting to get caught in the adventure and excitement of high returns. The crypto realm is tumultuous for both institutional and retail investors. Many have fallen into the trap of high returns from cryptocurrencies.
Michael Novogratz of Galaxy Digital became famous when he announced that BTC and ETH constitute about twenty percent of his overall wealth. At the same time, he adds that creating such a large position that, too, at an early stage meant that he suffered serious losses during the bear market. His ‘too greedy’ attitude caused him great agony when BTC prices hit rock bottom. With prices getting stabilized, he is getting more practical about the crypto realm.
Galaxy Digital’s Novogratz is skeptical about the current events in the crypto realm and calls Facebook’s Libra skeptical global currency. He would rather refer to it as a global payment tool. Currencies are mostly associated with central banks of countries and governments.
Sustainable profitable outlook will promote crypto
Galaxy Digital’s Novogratz also mentioned about Chinese President Xi Jinping promoting blockchain. Though he cautioned that the Chinese leader was promoting blockchain and not cryptocurrencies in general. People must understand the difference.
Galaxy Digital’s Novogratz further explains that the past five years in the crypto market were quite volatile. Now mass adoption reflects real changes in the crypto realm and market structure is more uniform. Cryptocurrencies have matured, and the same is reflected in Bitcoin price action.