Mike Novogratz, CEO of crypto bank Galaxy Digital, has said in an interview with New York Magazine that the recession in the cryptocurrency market will last for about 18 more months, and the industry will see the first signs of recovery after the easing of the Fed’s monetary policy.
When asked about the depth and duration of the current recession, he has said:
“I wish I had a crystal ball. My intuition tells me that 18 months, maybe even a little less. I think by autumn the Fed will have to stop raising rates, and I think that will make people calm down and start building again.”
According to Novogratz, the market is in for a big downturn, as the crisis has changed people’s attitudes towards high-risk assets like cryptocurrencies. He has noted that the past few months have shown the industry’s dependence on leverage, which no one knew about.