The ongoing financial distress of Digital Currency Group (DCG) is not expected to have a significant impact on cryptocurrency prices, according to Mike Novogratz, CEO of Galaxy Digital Holdings. In an interview on CNBC’s Squawk Box, Novogratz said that while the situation is “not good news,” he does not believe it will lead to “a lot of selling.”
"The outlook for #crypto is not horrible but it's not great. We've got regulatory headwinds we didn't have before. People are going to cut costs and survive this transition period," says @novogratz. "Crypto is not going away. It's a pretty clean market right now." pic.twitter.com/k57ITlRFOV— Squawk Box (@SquawkCNBC) January 10, 2023
DCG is a major player in the cryptocurrency industry, as the owner and operator of Grayscale Investments, the world’s largest digital asset manager. It also owns institutional lending company Genesis, advisory firm Foundry, and owned crypto media company CoinDesk.
Novogratz’s opinion contrasts with a recent report from Arcane Research, which warned that the financial distress at DCG could have a severe impact on crypto markets. The report suggested that if DCG were to enter bankruptcy, it could be forced to liquidate assets and sell large positions in its Grayscale Bitcoin Trust and other crypto-related trusts, which would put pressure on crypto prices.
Investors should pay attention to the ongoing financial distress related to Digital Currency Group (DCG) as the outcome could severely impact crypto markets.— K33 Research (@K33Research) January 4, 2023
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