{"id":572269,"date":"2022-06-09T17:50:20","date_gmt":"2022-06-09T16:50:20","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=572269"},"modified":"2022-06-09T17:50:20","modified_gmt":"2022-06-09T16:50:20","slug":"galaxy-digitals-mike-novogratz-warns-66-crypto-hedge-funds-will-go-out-of-business","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/galaxy-digitals-mike-novogratz-warns-66-crypto-hedge-funds-will-go-out-of-business\/","title":{"rendered":"Galaxy Digital&#8217;s Mike Novogratz Warns that 66% of Crypto Hedge Funds Will Go Out of Business"},"content":{"rendered":"<p>Key takeaways:<\/p>\n<ul>\n<li>Galaxy Digital&#8217;s Mike Novogratz has said that two-thirds of crypto hedge funds will fail.<\/li>\n<li>Mr. Novogratz cited the ongoing global macroeconomic environment as the core reason 66% of crypto hedge funds will go out of business.<\/li>\n<li>He also pointed out that the recent market sell-off due to UST&#8217;s collapse is an additional factor toward crypto hedge funds closing shop.<\/li>\n<\/ul>\n<p>Galaxy Digital&#8217;s founder and CEO, Mike Novogratz, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-08\/galaxy-s-novogratz-says-two-thirds-of-crypto-hedge-funds-to-fail\" target=\"_blank\" rel=\"nofollow noopener\">has forecasted<\/a> a rough road ahead for crypto hedge funds. According to Mr. Novogratz, two-thirds of the existing hedge funds invested in the cryptocurrency industry will fail due to the ongoing <a href=\"https:\/\/en.ethereumworldnews.com\/bitcoin-and-crypto-bear-market-is-great-for-building-and-investing-pantera-capital-exec\/\" target=\"_blank\" rel=\"noopener\">Bitcoin and crypto bear market<\/a>.<\/p>\n<p>He spoke at the Piper Sandler Global Exchange and Brokerage Conference on Wednesday, where he explained that of the estimated 1,900 crypto hedge funds, 66% would go out of business. He said:<\/p>\n<blockquote><p>Volume will go down, hedge funds will have to restructure.<\/p>\n<p>There are literally 1,900 crypto hedge funds. My guess is two-thirds will go out of business.<\/p><\/blockquote>\n<p>Mr. Novogratz further explained that the crypto hedge funds&#8217; potential collapse would be due to the broader macroeconomic environment beginning with the US Federal Reserve withdrawing its intervention in stimulating the economy. Furthermore, last month&#8217;s <a href=\"https:\/\/en.ethereumworldnews.com\/terraform-labs-under-radar\/\" target=\"_blank\" rel=\"noopener\">collapse<\/a> of TerraUSD (UST) and Terra (LUNA) has applied additional selling pressure to the crypto markets.<\/p>\n<h2>UST, LUNA Not Strong Enough To Handle a Bitcoin Market Downturn.<\/h2>\n<p>Concerning UST and LUNA, <a href=\"https:\/\/en.ethereumworldnews.com\/galaxy-digitals-mike-novogratz-terra-luna-tattoo-will-be-a-reminder-that-venture-investing-requires-humility\/\" target=\"_blank\" rel=\"noopener\">Mike Novogratz<\/a> explained that the project was not strong enough to handle the effects of a Bitcoin bear market. He explained:<\/p>\n<blockquote><p>It wasn\u2019t strong enough to deal with the headwinds of Bitcoin prices going down, crypto prices going down. It was a catastrophic loss.<\/p>\n<p>The CEO was unbelievably bright and charismatic and there was a tremendous amount of momentum behind what he was doing.<\/p><\/blockquote>\n<h2>Galaxy Digital Will Continue to Hire People.<\/h2>\n<p>He also highlighted that Galaxy Digital would <a href=\"https:\/\/en.ethereumworldnews.com\/binance-to-fill-500-jobs-globally-despite-crypto-winter-vibes-of-layoffs-and-rescinded-offers\/\" target=\"_blank\" rel=\"noopener\">continue to hire<\/a> bright minds despite the ongoing Bitcoin and Crypto bear market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways: Galaxy Digital&#8217;s Mike Novogratz has said that two-thirds of crypto hedge funds will fail. Mr. Novogratz cited the ongoing global macroeconomic environment as the core reason 66% of crypto hedge funds will go out of business. He also pointed out that the recent market sell-off due to UST&#8217;s collapse is an additional factor toward crypto hedge funds closing shop. Galaxy Digital&#8217;s founder and CEO, Mike Novogratz, has forecasted a rough road ahead for crypto hedge funds. According to [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":572270,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[825,947],"tags":[108421,1889,3442,1880],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/572269"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=572269"}],"version-history":[{"count":1,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/572269\/revisions"}],"predecessor-version":[{"id":572271,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/572269\/revisions\/572271"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/572270"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=572269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=572269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=572269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}