Galaxy Digital CEO: The next crypto cycle will start in October

Galaxy Digital founder and CEO Mike Novogratz asserted at the Consensus 2022 conference that the next crypto cycle will begin in October.

Novogratz said in a speech at the conference that Bitcoin will not "trade well until the Fed's aggressive rate hikes stop," but he expects Bitcoin to bottom out before the U.S. stock market. He said: "I hope that by the fourth quarter, the economy will slow down enough that the Fed will have to pause, and then you will see the next crypto cycle begin, and then, Bitcoin will break away from stocks and lead the market."

As for how Galaxy Digital (GLXY) and other companies can ride the next bull run, Mike Novogratz said to "fight the urge to be so greedy."

He said those who got in early on Luna could easily get a 300x return, which is not realistic in the market, and he warned investors: "When the ecosystem grows really fast, it's for a reason. Know what you are investing in, 18% returns don't come for free."

Galaxy Digital, headed by Mike Novogratz, is responsible for selling crypto investment funds to institutions, and its investment banking division advises digital asset and blockchain companies on financing and acquisitions. The company's trading desk handles orders from more than 800 investors, while Galaxy's Principal Investments division owns shares in 93 portfolio companies. The company has more than $2 billion in digital assets on its balance sheet.

Market data shows that Galaxy Digital shares have fallen 68% year to date, underperforming Bitcoin, which has fallen 38%.

Novogratz, who has been advising investors to allocate 1% to 5% of their assets to cryptocurrencies, stressed that volatility in the crypto market is likely to continue while the macro environment remains challenging.

Bitpush previously reported that on May 18, Mike Novogratz published an open letter to assure investors that "the crypto market will not disappear." Novogratz said that the cases of Terra and LUNA reinforced "some core principles of investment," including diversified portfolios and profit-taking at any time, and revealed that his company adhered to these principles in its investment in LUNA.

As for his Luna tattoo, he has kept it, and Mike Novogratz said: "It's a good reminder that not everything you do will be fruitful."