Crypto Industry Looks Like A 'Bunch Of Idiots,' Says Mike Novogratz

Mike Novogratz, CEO of digital asset investment firm Galaxy Digital Holdings BRPHF, reflected on the lessons learned from the cryptocurrency crash this year.

What Happened: Speaking at the Bloomberg Crypto Summit, Novogratz recounted the events over the last two months that turned into a “full-fledged credit crisis” in crypto.

This resulted in “huge damage to the confidence of the [crypto] space, into the infrastructure of the space,” he said.

“It’s frustrating as heck because at times the whole industry looks like a bunch of idiots.”

See Also: Bitcoin Sees $148M Liquidations As Price Crosses $23,000

Bitcoin BTC/USD, Ethereum ETH/USD, and the wider crypto market saw massive drawdowns this year — the bulk of negative price action came after Luna’s LUNA/USD ecosystem collapsed.

Novogratz himself was a strong believer in LUNA, having gotten a tattoo of the cryptocurrency on his arm in January.

“My tattoo will be a constant reminder that venture investing requires humility,” said Novogratz at the time.

Long term, the Galaxy Digital CEO is still bullish on crypto, despite acknowledging that a majority of investors in the space were overleveraged with inadequate levels of risk management.

See Also: IS BITCOIN A GOOD INVESTMENT?

He predicted that Bitcoin would still reach a price level of $500,000 by the year 2027.

Price Action: According to data from Benzinga Pro, at press time, BTC was trading at $23,419, up 5.8% over 24 hours.

See Also: Bitcoin, Dogecoin Spike, Ethereum Fizzles Out: FOMO Behind Current Crypto Rally Or Is There More?

Photo by Seb Daly/RISE via Sportsfile via Wikimedia