Novogratz believes that the two main cryptocurrencies will not leave the market
Bitcoin and Ethereum will not leave the market, despite the ongoing crisis of confidence in the cryptocurrency industry. Galaxy Digital CEO Mike Novogratz believes that market participants are now seeing a ripple effect for projects related to FTX and Three Arrows Capital.
“Companies will need several weeks to rebalance. But bitcoin will not disappear. There are 150 million people who have chosen to store some of their wealth in BTC in this decentralized crypto-verified community. Therefore, bitcoin and ethereum will not disappear. And other cryptocurrencies either, ”said the entrepreneur.
According to him, the crypto market will certainly recover, and then begin to slowly grow.
“I really think you will see people like ARK Invest CEO Cathy Wood coming into the crypto market soon and investing. I don’t think it will be a quick recovery. It will most likely take a long time. Rebuilding trust will not be easy. Centralized companies will have to act differently,” said the businessman.
Meanwhile, Glassnode analysts point out that, unlike whales, investors with a balance of less than 1 BTC after the bankruptcy of FTX added 96,200 bitcoins to their total balance. Now the association of small investors owns more than 1.21 million BTC, which is equal to 6.3% of the circulating supply of the first crypto coin in the world.
Also, the so-called “crabs” with assets from 1 to 10 BTC took advantage of the opportunity to purchase bitcoin at the bottom. This category of investors purchased more than 190,000 bitcoins in the last month.
Experts believe that this may indicate readiness for sale. However, the total amount is rather modest compared to the total assets of the “whales” of 6.3 million bitcoins.
Analysts believe that a significant number of investors continue to store the main cryptocurrency in cold wallets, as centralized platforms have lost the trust of users.