{"id":13177,"date":"2022-07-08T04:12:31","date_gmt":"2022-07-08T04:12:31","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/mike-novogratz-says-crypto-crash-is-almost-done-price-to-remain-sideways\/"},"modified":"2022-07-08T04:12:31","modified_gmt":"2022-07-08T04:12:31","slug":"mike-novogratz-says-crypto-crash-is-almost-done-price-to-remain-sideways","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/mike-novogratz-says-crypto-crash-is-almost-done-price-to-remain-sideways\/","title":{"rendered":"Mike Novogratz says crypto crash is almost done, price to remain sideways"},"content":{"rendered":"

(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum & Crypto News )<\/b>
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Mike Novogratz says centralized crypto companies like Celsius and BlockFi have exposed the rot that decentralization in crypto sought to remove.<\/strong><\/em><\/p>\n

Cryptocurrencies are almost done with the turbulence of the massive deleveraging that has swept through the market wiping out more than $2 trillion of value, says Galaxy Digital CEO Mike Novogratz.<\/p>\n

Speaking in a CNBC \u2018Squawk Box<\/em>\u2019 interview on Thursday, the investor talked of the current market outlook as suggesting the worst of it is almost done.<\/p>\n

However, while most of the sell-off momentum appears spent, after the \u201creceding tide\u201d revealed just how massively some centralized companies were leveraged, everything will need to calm down before prices begin to go higher again.<\/p>\n

Novogratz says meantime, crypto prices might continue to hover sideways or even see fresh downsides until the Fed flinches or new capital comes into the market.<\/p>\n

\u201cCan we go lower? Of course we could,\u201d he told CNBC. \u201cIt feels that we\u2019re 90% through that deleveraging, but the problem is for you to go much higher, you need the narrative to re-pick and you need new capital to come in<\/em>.\u201d<\/p>\n

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“Can we go lower? Of course we could. It feels that we’re 90% through that deleveraging,” says @novogratz<\/a> on #crypto<\/a>. “The problem is for you to go much higher, you need the narrative to go much higher and you need new capital to come in.” pic.twitter.com\/aoWFcorWhX<\/a><\/p>\n

\u2014 Squawk Box (@SquawkCNBC) July 7, 2022<\/a><\/p>\n<\/blockquote>\n

Novogratz blast some centralized crypto companies\u00a0<\/h2>\n

Commenting on the woes facing some of the crypto companies, the Galaxy Digital CEO says he expects investigations and even prosecutions over gross misconduct.<\/p>\n

He says decentralized companies in crypto like Compound or Aave have functioned \u201cas they were meant to,\u201d with transparency and such.<\/p>\n

However, it\u2019s centralized firms that have come in and operated opaquely, leading to all the massive leveraging and interlending that is now pushing most into bankruptcy.<\/p>\n

\u201cLook at Celsius for example, no one knew how much leverage they had. Or Three Arrows Capital. I think when all is said and done there will be accusations and prosecutions for fraud. There will be gross misconduct, you know, in some of these companies<\/em>.\u201d<\/p>\n<\/p><\/div>\n