The forced selling exodus made cryptocurrencies Galaxy Digital Holdings founder Mike Novogratz says that the economy was partially resilient in the month just before.
Novogratz spoke at a conference held in Singapore. pointed out:
“We’re in this weird equilibrium where there are a few buyers, there are a few sellers, and there’s not that energy in the market like you’re seeing in the equity market or the bond market where you have to sell, right?”
A bearish run has been initiated by the presence of significant leverage in the crypto market.
Novogratz did acknowledge that cryptocurrencies will take off once more people are aware of them. Federal Reserve The Federal Reserve eased aggressive monetary tightening but it was not sustainable until Web3 projects saw mass adoption.
He also added:
“Many crypto hedge funds won’t survive 2022’s rout in virtual coins. The implosion of Do Kwon’s Terraform Labs project was ‘heartbreaking’ and a lesson for the crypto industry.”
South Korean authorities requested Interpol to issue a Red Notice for his Arrest after Kwon denied Being in hiding away from law enforcement
Due to the bearish outlook, TerraUSD (UST), Luna crashed, resulting in the loss $60 million in investor funds. The cryptocurrency markets have seen the least engagement in two decades. Market insight provider Santiment explained:
“If it feels like there are less people commenting and showing interest in crypto these days, your intuition is correct. Since 2020, commentary has not been as scarce. Twitter has especially taken a hard fall in the past month.”
Santiment admitted that profit-taking tendencies emerged after. Bitcoin Closed the $20,000 mark and stated:
“Many traders were apparently awaiting the $20k threshold to begin selling their bags. As Bitcoin crossed back above this psychological level, mass profit taking ensued.”
Time will show how cryptocurrency continues to develop in a tight macroeconomic environment.