Galaxy Digital CEO and Bitcoin (BTC) bull Mike Novogratz warned crypto traders that altcoins could still see massive devaluations.
Mike Novogratz says that altcoins are at risk of losing more than half of their value, even if they suffer a massive drop from all-time highs.
"The bottoms are down over 80%. In 2017 that was over 95%. I mean picking bottoms is dangerous, and scale slowly if you do."
Billionaire BTC bull Mike Novogratz also says the outlook for the entire financial market is bleak, suggesting that crypto assets are likely headed for lower prices.
While Mike Novogratz says that the macro ground appears to be bearish, he remains optimistic that the crypto markets will eventually recover.
“Crypto isn't going away. The amount of human capital moving into space isn't slowing down. The focus on creating decentralized infrastructure that allows value and property to flow as freely as information on the internet isn't slowing down. Our community is resilient, has a shared belief in doing something new and reassurance that it's a very early start. "
G7 countries have called for regulation for cryptocurrencies.
With the collapse of the Terra ecosystem, the necessity of regulation for cryptocurrencies once again came to the fore. Finance ministers and central bank governors of the G7 countries called for the rapid introduction of comprehensive cryptocurrency regulations at the meeting held in Bonn and Königswinter, Germany, from May 18-20. "In line with the recent turmoil in the cryptocurrency market, the G7 calls on the FSB (Financial Stability Board) to ensure the rapid development and implementation of coherent and comprehensive regulation," the draft document created at the meeting said.
According to data from crypto investment and research firm CoinShares, Bitcoin-backed funds saw the highest-ever inflow of nearly $300 million last week. On the other hand, while outflows from Ethereum-backed funds more than doubled, Solana-backed funds also exited. BTC inflows are considered to be a strong signal that investors see the collapse of terra USD (UST) and the Terra network LUNA token as a buying opportunity.