“Confidence in Crypto Is Decreasing, But This Too Will Pass”

Mike Novogratz, CEO of cryptocurrency investment firm Galaxy Digital, has changed his prediction that Bitcoin will climb to $500,000 in five years.

Galaxy Digital CEO Michael Novogratz said in an interview with Bloomberg that Bitcoin will hit $500,000, but not in “five years.” Novogratz noted that Bitcoin, like most risky assets, has been down this year as the Fed raised interest rates to contain inflation. Bitcoin has lost more than 60 percent of its value this year, falling to around $17,000. The repercussions of the bankruptcy of the FTX exchange last month triggered the acceleration of losses in the cryptocurrency market.

Talking about FTX’s filing for bankruptcy, the collapse of hedge fund Three Arrows Capital, crypto lending firm Celsius Network and BlockF, Novogratz said, “It definitely hurts overall confidence in crypto, but this too shall pass.” said.

Novogratz said that Galaxy Digital is considering acquiring potentially distressed and cheap cryptocurrencies through “some small acquisitions.” Saying that Galaxy has also reduced its balances on crypto currency exchanges as a precaution, the CEO said that after some of its assets were stuck in the FTX exchange, the exchanges started to look closely at their reserves.