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- Two weeks ago, the CEO of Galaxy Digital stated that Bitcoin would hit $500,000.
- Is Bitcoin affected by the collapse of FTX and crypto lender Celsius?
The Chief Executive Officer and Founder of Galaxy Digital, Mike Novogratz, has earlier predicted that Bitcoin will hit $500,000 in the upcoming five years quoting the Federal Reserve’s interest rate increment.
In a recent interview with Bloomberg, Mike denied his prediction on Bitcoin price and said that It will “not in five years,” He mentioned that the biggest change that occurred is that Fed Chair Jerome Powell found “his central banking superpowers.”
Mike noted, “Like most risk assets,Bitcoin has slumped this year because the Fed is raising rates to contain inflation.”
According to reliable data, Bitcoin was highest traded at around $69K in 2021, and currently, it is trading at around $17k, which fell around 70% in the last year, and the collapse of FTX has forced the market to struggle more in the last few weeks.
Mike quoted that the crash of FTX, including the bankruptcy of Celsius, Three AC and Voyager Digital and BlockFi, have severely affected the crypto market and forced the prices to decrease in a shorter period.
According to data from CoinMarketCap while writing this article, Bitcoin is trading at $16,953 with a 24-Hour trading volume of $21,844,571,965.66.
In the second week of November, TheCoinRepublic reported that Galaxy Digital release its quarterly earnings on 9 November 2022 and noted that $76.8 million exposure to troubled crypto exchange FTX consisting of cash and digital assets.
Considering this amount, Galaxy Digital noted that $47.5 million is currently in withdrawal. FTT, the native token of FTX, crashed on 8 November 2022, and after a severe price drop, the exchange halted all its withdrawals.
Despite the current situation, Galaxy Digital said it has $1.5 billion in liquidity, including $1.0 billion in cash and another $235.8 million in stablecoins, to cover losses.
Michael Novogratz said he was disappointed with Sam Bankman-Fried, the former FTX CEO. Michael further added that he maintained a good relationship with FTX before the entity’s downfall.
Novogratz stated, “What’s painful about this is that Sam Bankman-Fried spent so much time in DC. It wasn’t that what he was saying was crazy.” He added, “It’s just that if the messenger noe looks like he ran his ship into an iceberg. It’s just going to anger the people he spent time with and slow this down some.”
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
