While this year is about to end shortly, it was impactfully bearish and downward trending year in terms of the crypto market. Like every financial institute, Galaxy Digital is also not immune to the market side-effects. The founder of the mentioned firm talks about it and more with Financial Times.
About the firm :
Galaxy Digital is a diversified, multi-service merchant bank mostly operating on the digital assets and blockchain technology industry. It was established by ex- Goldman Sachs partner Mike Novogratz. In the interview with Financial Times, Novogratz unveiled his aim to transform Galaxy Digital into the “Goldman Sachs of crypto.”
While comparing the previous year with this year in the crypto market, he stated, “2017 was just fun, it was almost stupid. [But] this year has been challenging. It sucks to build a business in a bear market…[Staff] anxiety levels go up when crypto goes down…In most traditional business, [such as] Goldman Sachs, you don’t worry. There’s not an existential threat out there.”
Effects of the market on Galaxy Digital :
Similar to many firms Galaxy Digital has been suffering due to the bearish market. The shares of Galaxy Digital have dropped depressively in last months to $1.37 from its highest peak of $2.94.
Additionally, branches of the company such as venture capital, advisory, mergers & acquisitions, and capital raising, have witnessed a sharp decline in business.
Bullish perspective :
Despite such circumstances, Novogratz expressed his optimistic view. He believes that 2019 is going to be when “prices start moving again,” noting that the market trend will go upwards. Also, he estimated a “flip next year.”
He further stated, “It’s easy to get skeptical, but there’s something happening… I originally said ‘I am setting up the Goldman Sachs of crypto’, we need to stay very flexible on where things go.”
On this, Tim Swanson, founder of fintech advisory firm Post Oak Labs responded that Novogratz is attempting to “predict something that he has no influence over” whenever he says “something is going to happen with the price.”