Galaxy Digital CEO Mike Novogratz is singling out one catalyst that he predicts will end the prevailing crypto downturn.
Asked by a Bloomberg TV host in a new interview what will get Bitcoin (BTC) and Ethereum (ETH) out of the bear market, Novogratz says that for the flagship crypto asset, it is the macro-environment.
According to the Galaxy Digital CEO, Ethereum and other crypto assets will rely largely on innovation and to a certain extent, the macro conditions, to get out of the bear market.
“For Bitcoin, it’s about the macro. But for the rest of crypto, the Ethereum ecosystem and all the other layer-1 and layer-2 blockchains being built, and what’s built on top of them, that’s an inevitable march just starting to change how we actually operate.
And there’s a tremendous amount of venture capital that continues to come into the space – $5 billion last quarter, $9 billion the quarter before that. If you look at from Citadel to JPMorgan to the Bank of New York, BlackRock, the biggest players in traditional finance are actually making huge investments in and around this architecture.
We are going to see the tokenization of assets. We are going to see digital money in some form of a stablecoin.
And so that story continues to be really exciting. I think it’s going to need the macro to catch fire first before other people kind of get in because there’s still a correlation.”
Novogratz predicts that when the markets start looking up again, the crypto asset class will be a favorite with investors.
“I think when you see things turn, the digital space, the crypto space is going to be a favored child.”
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