During an interview on Tuesday (10 January 2023), Galaxy Digital Founder and CEO Mike Novogratz shared his outlook for crypto in 2023.
Novogratz told Andrew Ross Sorkin, co-anchor of CNBC’s Squawk Box, had this to say about Coinbase’s latest layoffs:
“2022 was a was a grand washout, you know, for growth stocks and for crypto. And so anything associated with it, especially that was growthy — you know, had big big cost and revenue shrinking — got hammered as as many of the crypto stocks did. I think CEOs — Brian at Coinbase and any rational CEO– is doing the right thing.
“The outlook for crypto is not horrible, but it’s not great. We’ve got regulatory headwinds that we didn’t have before. We’ve got time to heal and rebuild narrative, and so people are going to cut costs and survive this transition period. Crypto is not going away. What’s been interesting is the price of Bitcoin and Ethereum has helped pretty steady the last few months, and it’s actually gone up in the last few days.
“If you had to sell, there’s a lot of bad news out there, you sold. If you’re leveraged, you got out of your leverage, and so it’s a pretty clean market right now. There’s still some overhangs — DCG and and Genesis and Gemini — that will play out in the next quarter. That’s not going to be great. I don’t think it will include a lot of selling. It’s just not good news.
“And so I think what we’re trying to do at Galaxy, listen, we’ve bought a big mining facility in Texas. We bought GK8, a security company, you know, a self-custody company in Israel. We’re leaning in where we think it’s appropriate, but we’re also sober, understanding that 2023 is a year you want to survive…“
