The majority of cryptocurrency-focused hedge funds will have to go out of business because of the current market downtown, Galaxy Digital CEO Michael Novogratz said at the Piper Sandler Global Exchanges & Brokerage Conference in New York.
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As per report by Bloomberg, Novogratz believes that many hedge funds with exposure to cryptocurrencies will have to restructure as "volume will go down."
"Volume will go down, hedge funds will have to restructure. There are literally 1,900 crypto hedge funds. My guess is two thirds will go out of business."
The Galaxy Digital CEO says that markets go down due to the Federal Reserve's removal of stimulus. He also added that the recent collapse of the Terra ecosystem affected investors' confidence in the crypto market.
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