In a recent conversation with Anthony Pompliano, Galaxy Digital CEO Mike Novograts expressed the opinion that the global recession will slow down the spread of cryptographic currency for 12-18 months.
"With regard to cryptovalues, it is likely that current events will determine the perception of Bitcoin and other coins as a means of accumulation and part of the future decentralized Internet. We are forced to go through a difficult time and regain confidence in the future of the crypt currency", —, he said.
Novograts added that due to the unfavorable economic situation in the world, people are forced to sell assets that they would otherwise keep for the long term. Today, this can be seen on the example of gold, whose price is also falling rapidly.
"At the moment there is a liquidity crisis and investors are forced to get rid of all assets. If previously they were buying gold for the long term, now they are selling it. Bitcoin and other crypt currencies are a story of confidence, right? Savings funds have at least some value just because we think so. Gold is now also the object of the confidence game. We're going through the biggest blow to confidence," — he explains.
According to Novograts, there will be a lot of liquidity after the crisis, which will also affect Bitcoin. The price may rise significantly afterwards.
Meanwhile, the monthly correlation between Bitcoin and Gold has started to grow again and reached 55%, although recently it was 38%.
"I think the period of decline will be short and then the economy will recover very quickly", — Novograts said.
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