Galaxy Digital CEO Mike Novogratz said that 2023 is shaping up to be an important year for the cryptocurrency industry.
What Happened: According to Novogratz, the current transition period will require the industry to focus on “cutting costs” in order to survive in the wake of the collapse of FTX and several other market meltdowns from the past year.
"The outlook for #crypto is not horrible but it's not great. We've got regulatory headwinds we didn't have before. People are going to cut costs and survive this transition period," says @novogratz. "Crypto is not going away. It's a pretty clean market right now." pic.twitter.com/k57ITlRFOV
— Squawk Box (@SquawkCNBC) January 10, 2023
The Bitcoin (CRYPTO: BTC) bull said the cryptocurrency outlook this year is "not horrible, but not great" during Tuesday's CNBC's Squawk Box segment.
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Novogratz said the crypto space is facing some challenges but there is still room for optimism, adding that “crypto is not going away. It's a pretty clean market right now."
The recent debacle between Gemini and DCG "won't involve a lot of selling", but it's "just not great news”, noted Novogratz.
Earlier in November, Genesis' lending arm was forced to halt loan redemptions and originations due to a severe liquidity crunch. This financial situation has also drawn the attention of Gemini cofounder Cameron Winklevoss, who has accused DCG and its parent company of fraud.
Price Action: BTC was trading at $17,463 up 1.49% in the last 24 hours, according to Benzinga Pro.
Photo by RISE on Wikimedia Commons