In an interview, Galaxy Digital CEO Mike Novogratz expressed confidence in the strength of the cryptocurrency market this year.
Sellers are exhausted, Novogratz said, with China easing restrictions and Hong Kong showing a more positive attitude toward digital assets.
“I wouldn’t be surprised if the market spikes in three months, six months or nine months,” Novogratz said. Banks in China have been engaging directly with cryptocurrency firms in recent months, and Hong Kong regulators are hosting a meeting to help crypto firms gain access to banking services.
This stands in stark contrast to the regulatory crackdown in the United States, where regulators have warned banks of the increased risks associated with doing business with cryptocurrency firms.
Galaxy Digital, a listed and regulated company in the cryptocurrency industry, expects high costs for audits and legal fees. The company has also doubled its mining capacity since the beginning of the year.
Despite the regulatory challenges facing the industry, Novogratz remains bullish on the future of cryptocurrencies. “The market tells you it wants to be a store of value, a medium of exchange, and it wants to be owned by millennials,” he said.
As global interest in and adoption of digital assets continues to increase, it remains to be seen how regulatory developments will shape the future of the cryptocurrency market. For now, however, Novogratz’s bullish outlook suggests the market could continue to strengthen this year.