Mike Novogratz, founder and CEO of Galaxy Digital, made a notable assessment of the cryptocurrency market in a statement on social media platform X.
Galaxy CEO Novogratz: “We are not yet at the top of this cycle, but a dovish Fed chair could energize the market by the end of the year.”
Novogratz acknowledged that current market conditions are weak, but noted that this is because long-term investors are rebalancing their positions.
“After a long bull market, many investors diversify their portfolios by pulling some of their money out of areas where they were overly concentrated.
“This process will put pressure on prices in the short term, but in the long term it will make the market healthy by allowing it to move to a broader investor base,” he said.
Novogratz highlighted that Galaxy has the highest percentage of employee stock ownership in both the crypto and data center sectors.
Regarding the macroeconomic outlook, the experienced investor maintained that the peak of the current cycle has not yet been reached.
“We expect a new Fed chair to take office by the end of the year, and if he adopts more dovish policies than the market expects, that could inject new momentum into the market,” Novogratz said.
Novogratz added that a potential leadership change and possible softening of interest rate policy could spark a new wave of bullish activity in the crypto market.
*This is not investment advice.
