Mike Novogratz forecasts bear-market duration in crypto markets

The current bear phase of the cryptocurrency market could last up to six more months. This opinion was expressed by Galaxy Digital Mike Novogratz in an interview with Yahoo Finance.

“You know, the bear case means we have two to six months of pain left. In a bull market, the market begins to break down. And we will see many breakdowns. Not necessarily in cryptocurrencies, but in the rest of the world,” he said.

According to him, the selling impulse in the digital-asset market has largely run its course.

“Cryptocurrencies are interesting in that, three months ago, after a serious sell-off and a deleveraging wave, most people who needed to sell have done so,” the billionaire says.

This exerted downward pressure on prices and reduced activity in the crypto market, including from buyers, Novogratz noted.

He linked the sell-off in Bitcoin and other cryptocurrencies to the Fed’s aggressive rate hikes. At the same time, policy affected digital gold more strongly than many other assets, according to Novogratz.

“I think when a pause in rate hikes comes, we will see Bitcoin rise. As with other cryptocurrencies. Will we reach a pause? At some point, yes,” he said.

Earlier, Novogratz alreadyforecasted the rise of the first cryptocurrency, as soon as the Fed stops raising rates to combat inflation.

Analysts at Grayscale Investments anticipated the end of Bitcoin’s bear phase by the end of March 2023.

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