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Galaxy Digital CEO Mike Novogratz is updating his outlook on the future of the current bear market and the crypto markets as a whole.<\/p>\n
Novogratz says<\/a> in a Yahoo Finance interview that Bitcoin (BTC<\/a>) and other crypto assets are likely to rally once the Federal Reserve pauses its monetary tightening measures.<\/p>\n According to the Galaxy Digital CEO, the crypto market selloff was caused by the Federal Reserve hiking interest rates.<\/p>\n \u201cSince the Fed has decided to try to smash inflation by raising rates aggressively, the most aggressive rate-raising in our lifetime, Bitcoin sold off with other assets. It\u2019s actually done better than most.<\/em><\/p>\n I think if you finally get the pause, you will start seeing Bitcoin pick back up. Bitcoin and all cryptocurrencies.<\/em><\/p>\n Are we going to get the pause? At one point, yes.\u201d<\/em><\/p>\n On when the crypto downturn could end, Novogratz says that the prevailing bear market could last up to six more months.<\/p>\n \u201cYou know the bear case is we\u2019ve got two to six months left of this pain. The bull case is the market starts breaking. And we\u2019re seeing a lot of breakage. Not necessarily in crypto but in the rest of the world.\u201d<\/em><\/p>\n According to the Galaxy Digital CEO, sellers in the crypto market are largely exhausted.<\/p>\n \u201cCrypto\u2019s interesting in that three months ago, after the big selloff and the deleveraging, most people that needed to sell sold.<\/em><\/p>\n And so you\u2019ve seen price is much more muted. Things take off when there\u2019s a good story and they sell right back off when the story goes away.<\/em><\/p>\n And so a lot less activity in crypto, a lot less for sellers. But also a lot less new buyers.\u201d<\/em><\/p>\n