Under the title "Billionaire Advises Cryptocurrency Investors After Price Crash," the Arabic website reported that during a seven-day sell-off that erased nearly 50% of the cryptocurrency market's valuation, billionaire Mike Novogratz offered investors his advice: "Hold your position." In a two-and-a-half-minute video released by his company, Galaxy Digital, the founder and CEO stated that volatility is normal.
Novogratz added, "The market will now begin to contract for weeks, if not two months, as it rebuilds confidence," according to Business Insider, which was referenced by the Arabic site. He mentioned that the "mass liquidation" stemmed from a combination of factors — starting from the recent expiration of the last tax deadline, which allowed some cryptocurrency holdings to qualify for long-term capital gains, to Elon Musk's comments that angered "the bears," especially his remarks about the environmental impact of Bitcoin due to electricity consumption.
Novogratz emphasized that the fundamental progress occurring in both the Bitcoin ecosystem and the Ethereum ecosystem, as well as many cryptocurrencies, represents the maximum evolutionary speed for those assets. The Galaxy head also stressed that the value behind cryptocurrencies lies in the technology that will revolutionize how people transfer value to one another, whether in insurance, derivatives, or even banking.
He stated, "The great decentralized revolution is alive and strong, and the price has been paid every time the prices collapsed, which have always returned strongly." The global market capitalization of cryptocurrencies dropped to $1.35 trillion on Wednesday, down 47% from its recent peak of $2.56 trillion on May 12, according to data from CoinMarketCap.com.
