Bitcoin Sharp Sell-Off May Be Nearing A Bottom, Says Galaxy Digital’s Mike Novogratz

Galaxy Digital's Mike Novogratz
Galaxy Digital's Mike Novogratz

Bitcoin’s dramatic sell-off may be coming to an end, with a potential rest as the cryptocurrency space is experiencing a rippling reminiscent of Long-Term Capital Management two decades ago, billionaire investor and bitcoin bull Mike Novogratz told CNBC on Tuesday. 

“[We’re] going through what feels to be a little bit like a Long Term Capital Management moment in crypto,” said the founder and CEO of investment management firm Galaxy Digital in an interview. 

LTCM nearly collapsed in 1998 and was set to expose Wall Street’s largest banks to more than $1 trillion in default risks. 

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[“When] it started unwinding, there was repercussions everywhere. And you know, we’re seeing that in the crypto space right now with both Celsius,” and the Terra Luna ecosystem imploding, he said. 

Crypto lender Celsius Network over the weekend halted withdrawals for clients, as well as swaps and transfers between accounts after crypto prices crashed, with bitcoin shedding over 20% from its value. In May, the TerraUSD algorithmic stablecoin lost its US dollar currency peg that extended to its sister token Luna.