This Billionaire Says Crypto Stays Here

Galaxy Digital CEO Mike Novogratz says Bitcoin and Ethereum are here to stay. He said the two biggest cryptocurrencies are going nowhere despite growing negative sentiment across the crypto industry.

Mike Novogratz Says Bitcoin and Ethereum Will Stick

In an interview with CNBC’s Squawk Box, Novogratz said he does not see a future where Bitcoin and Ethereum collapse. He said these two assets continue to be strong despite low trust levels across the crypto market.

Galaxy Digital is a cryptocurrency investment company. The company was not without losses this year following a bear market that saw several projects and cryptocurrency companies go bankrupt. Novogratz is a big believer in Do Kwon’s Terra Luna, and even got a tattoo representing his commitment to the project before his surprising collapse in May.

“We are certainly facing a crisis of trust in this market and we are not out of the woods yet. There is a lot of daisy chain effect going on and people are touching Three Arrows Capital and touching FTX. FTX was a major player, so it’s going to take weeks just for people to get back into balance,” Novogratz said.

He claimed that Bitcoin will never go away. According to him, about 150 million people choose Bitcoin as a store of value. Additionally, the Bitcoin community continued to grow as people embraced methods of verifying transactions using cryptography. This is why Bitcoin, Ethereum and Blockchain never went away.

Crypto market recovery is on the way

Novogratz also expects a recovery in the cryptocurrency industry, but added that there will be a slow upward trend and the recovery will not be instantaneous.

This is somewhat different from the behavior of the cryptocurrency market. The cryptocurrency market is known for its intense volatility, and cryptocurrency prices can quickly lose or gain value. However, volatility has dropped significantly.

Novogratz also added that there is new funding for the sector. He pointed to Ark Invest CEO Kathy Wood, who said she, along with other institutional investors, will inject capital into the sector.

However, he noted that the recovery will not be easy and will take a relatively long time.One thing the sector needs to do is rebuild confidence levels. The collapse of the FTX exchange has lowered confidence levels in the cryptocurrency sector as the exchange was one of the largest in the world.

Novogratz said centralized companies will have to do things differently and make sure that trust is restored. Some efforts have already been made to make this happen. Binance, the largest centralized exchange by trading volume, has announced the establishment of an industry recovery fund to help distressed crypto companies affected by the FTX collapse.

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