Mike Novogratz equates crypto crash to Long Term Capital Management crisis | CryptoSlate

CryptoSlate

👋 Want to work with us? CryptoSlate is hiring for a handful of positions!

Michael Novogratz, a crypto investor, and CEO of Galaxy Digital, told CNBC that the cryptocurrency market is undergoing the same turmoil triggered by Long Term Capital Management in 1998.

Long Term Capital Management was a highly leveraged hedge fund run by Nobel Prize-winning economists and Wall Street traders. When the company went bust, the U.S. Federal Reserve was forced to bail it out to prevent a collapse of the financial markets because of Wall Street investment banks’ exposure to the fund.

How To Get Free Crypto  

Novogratz said:

“We are going through what feels to me a little bit like a Long Term Capital Management moment in crypto.

It was the big hedge fund with all the leverage, and when it started unwinding, there was repercussions everywhere. We are seeing that in the crypto space right now.”

Novogratz, who had invested in LUNA, blamed the collapse of the Terra ecosystem and the ongoing Celsius crisis for accelerating the deleveraging in the market.

“We’ve gone to the level that should be close to a bottom. $21,000 bitcoin $1,000 ethereum. There’s been a tremendous amount of capitulation and fear.

Usually not a good area to sell, but it doesn’t mean we can’t go lower. I think the macro environment is still pretty challenging out there.”

Novogratz’s comments come as the crypto market faces one of the worst crashes in history. The total crypto market capitalization has dipped below $1 trillion, while Bitcoin (BTC) fell below $21,000 on June 14, according to Cryptoslate data. At the time of writing, Bitcoin was trading at $22,481 while Ethereum’s  (ETH) price hovered around $1,225.

Posted In: Investments, People

Go to Source
Author: Monica Noronha


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.