Mike Novogratz, the big bull of bitcoin and the founder and CEO of Galaxy digital Holdings Co., Ltd., said that due to the current market downturn, two-thirds of the hedge funds investing in cryptocurrencies will fail. Novogratz said at an event on Wednesday: "the trading volume will decline and hedge funds will have to restructure. In fact, there are 1900 cryptocurrency hedge funds. I think two-thirds of them will fail."
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Novogratz pointed out that the response of the digital asset market to the cancellation of stimulus measures by the Federal Reserve was the reason for the sharp fall in cryptocurrency prices in the past six months. Bitcoin has fallen by more than 50% from its record high in November last year.
Novogratz has been criticized for the role he and his company played in the recent collapse of Terra blockchain. He said that Terra's collapse had weakened people's confidence in cryptocurrency and decentralized finance.
