Billionaire investor speaks at Piper Sandler conference

Due to the present market downturn, two-thirds of hedge funds investing in cryptocurrencies will fail, according to Mike Novogratz, founder, and CEO of Galaxy Digital Holdings Ltd.

“Volume will decline, forcing hedge funds to restructure.” At a seminar in New York, Novogratz said, “There are 1,900 crypto hedge funds, and I bet that two-thirds will go out of business.”

Novogratz Blames Complicated Global Macro Backdrop

The decline in token values over the last six months has been attributed to the overall reaction of the financial market and the withdrawal of Federal Reserve support, according to former hedge fund manager Fortress Investment Group.

Bitcoin has dropped more than 50% from its all-time high in November, and Novogratz revealed the TerraUSD blockchain’s failure last month.

“Despite the economic slump, Galaxy continues to expand under contract to competitors like Gemini Trust Co., which is laying off employees to withstand the bear market,” Novogratz added.

He intends for his bitcoin brokerage and asset management organization to be operational after the economic downturn is over, he said.