Michael Novogratz: Stop hunting for black swans — not all crypto exchanges are FTX
Following this week’s congressional hearings over the fallout of FTX’s bankruptcy, high-profile cryptocurrency investor Michael Novogratz defended the industry, saying Thursday that not all crypto exchanges are managed the way FTX (FTT-USD) was governed.
“It’s really dangerous to think that you have one black swan, you’re going to see them everywhere – like, you’re going to have criminal organizations all over the place and these places run by sociopaths,” the CEO of cryptocurrency-focused financial services firm Galaxy Digital Holdings (OTCPK:BRPHF) told CNBC.
“I don’t think that under every rock there’s a guy stealing your money,” he added.
On this year’s meltdown in the crypto market, Novogratz tried to put the sharp declines in historical perspective. He argued that easy monetary policy helped drive Bitcoin (BTC-USD) from $8K to $60K during its boom years. Meanwhile, the tightening of monetary policy in 2022, with the Federal Reserve and other central banks aggressively raising interest rates, contributed to a retracement back down to $17K.
However, the Galaxy CEO predicted that authorities would eventually need to ease their tight fiscal and monetary policies, a turn that will drive crypto prices higher in future. In addition, he argued that adoption continued to expand for the industry.
“Even in this terrible bear market of crypto, you’re seeing new ways that people can participate in Bitcoin and the crypto market,” he said.
Bitcoin (BTC-USD) has suffered a massive decline in 2022. The crypto is currently trading at around $17,419, down about 4% in Thursday’s trading and lower by almost 64% over a period of one year.
Novogratz isn’t the only big-name investor to speak up for the crypto industry in the wake of the FTX scandal. In a separate CNBC interview earlier this week, billionaire venture capitalist David Rubenstein said fallout of FTX doesn’t mean crypto industry will fall apart.
For more on crypto, see why Seeking Alpha contributor The Digital Trend is eying the next bull phase, which they argue will see Bitcoin reach new all-time highs.
Read More: Michael Novogratz: Stop hunting for black swans — not all crypto exchanges are FTX
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