Bitcoin Bull Billionaire Mike Novogratz Shares Crypto Market Outlook

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Galaxy Digital CEO Mike Novogratz is still bullish about crypto in 2023. “The outlook for crypto isn’t horrible, but it’s not great,” Novogratz told CNBC. Bitcoin bull said liquidity issues at crypto brokerage Genesis are weighing on the industry. LoadingSomething is being loaded.

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Galaxy Digital CEO Mike Novogratz says 2023 will be a time for the cryptocurrency industry to “cut costs” and “survive this transition period” after the collapse of FTX, as well as a multitude of other market meltdowns that still spill over from last year.

The bitcoin bull says the outlook for the crypto isn’t “awful, but it’s not great,” he told CNBC’s Squawk Box on Tuesday.

“We have regulatory headwinds that we didn’t have before,” Novogratz said. “We have time to heal and rebuild the narrative. And so people are going to cut costs and survive this transition period.”

Novogratz’s comments come at a time of great uncertainty for the industry.

The fledgling space suffered the fallout from its biggest players like Sam Bankman-Fried’s crypto exchange FTX, hedge fund Three Arrows Capital, and algorithmic stablecoin TerraUSD.

The uncertain fate of Digital Currency Group (DCG), the crypto conglomerate that owns digital asset brokerage Genesis and asset manager Grayscale, is also an overhang for the industry.

Genesis’s lending arm halted buyouts and loan originations in November due to a severe liquidity crunch. The company and its parent company are facing fraud charges from Gemini co-founder Cameron Winklevoss.

Novogratz says the Gemini and DCG debacle won’t involve “a lot of selling” for crypto markets, but it’s “just not good news.”

DCG is being investigated by US prosecutors for internal transfers between the parent company and its troubled lender, Bloomberg reported Friday, citing unnamed sources.

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