Galaxy Digital Invests $44 Million Into Institutional Cryptocurrency

In order to access its exclusive asset storage and management capabilities, Galaxy Digital has put $44 million into an institutional bitcoin custody platform.

The purchase of GK8, a company that has created its own patent bitcoin custody system with the intention of providing safe asset management for institutional customers, has been successfully completed by the cryptocurrency investment business owned by Mike Novogratz.

The firm specializes in the provision of cold vault technology, which enables transactions to be carried out despite the absence of a connection to the internet. It has the potential to automate transactions thanks to its in-house multi-party computation (MPC) vault, and the service also gives access to decentralized finance (DeFi) networks, tokenization, and NFT trading.

According to a statement released by Novogratz, one of the primary motivations for the purchase was the rising demand for custody services among investors. The cold storage solutions and wallet technologies developed by GK8 will be integrated into GalaxyOne, the premier brokerage platform that will soon be released by Galaxy Digital.

As a result of the business transaction, Galaxy will expand its operations to include a location in Tel Aviv, where they will bring on approximately 40 staff formerly employed by GK8. Lior Lamesh and Shahar Shamai, co-founders of GK8, will continue in their roles as leaders of Galaxy’s custodial technologies offering after the company was acquired.

At the time of its introduction, GalaxyOne is expected to provide institutional-grade consumers with access to a comprehensive variety of bitcoin financial services. Trading, lending, derivatives, cross-portfolio margining, and custodial offers are all going to be a part of this. All of these are going to be handled by GK8.

In December 2022, Galaxy announced the purchase of Argo Blockchain’s primary mining operation for the price of $65 million. This move was Galaxy’s way of doubling down on its investments in the cryptocurrency mining business. In order to avoid going bankrupt during a challenging year for the mining industry, the mining company was forced to sell up its Helios mining plant.

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Crypto Gets Resilience in the Past Month as Forced Selling Exit

The exodus of forced selling made cryptocurrencies partly resilient in the last month, according to Galaxy Digital Holdings founder Mike Novogratz.

Speaking at a conference in Singapore, Novogratz pointed out:

“We’re in this weird equilibrium where there are a few buyers, there are a few sellers, and there’s not that energy in the market like you’re seeing in the equity market or the bond market where you have to sell, right?”

Significant leverage has engulfed the crypto market, triggering a bearish run.

Nevertheless, Novogratz acknowledged that cryptocurrencies would take off again once the Federal Reserve (Fed) eased the aggressive monetary tightening, but this would not happen in a sustainable way until Web3 projects experienced mass adoption.

He added:

“Many crypto hedge funds won’t survive 2022’s rout in virtual coins. The implosion of Do Kwon’s Terraform Labs project was ‘heartbreaking’ and a lesson for the crypto industry.”

South Korean authorities have asked Interpol to issue a red notice for his arrest after Kwon denied being in hiding from law enforcement.

The crash of TerraUSD (UST) and Luna, which triggered the loss of $60 million of investor funds following the bearish outlook in the market, has made cryptocurrency platforms witness the least amount of engagement in two years based on the departure of weak hands. Market insight provider Santiment explained:

“If it feels like there are less people commenting and showing interest in crypto these days, your intuition is correct. Commentary hasn’t been this scarce since the end of 2020. Twitter has especially taken a hard fall in the past month.”

Meanwhile, Santiment acknowledged that profit-taking tendencies surfaced after Bitcoin closed the $20,000 mark and said:

“Many traders were apparently awaiting the $20k threshold to begin selling their bags. As Bitcoin crossed back above this psychological level, mass profit taking ensued.”

Therefore, time will tell how cryptocurrencies continue shaping up amid a tightened macroeconomic environment. 

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Billionaire Mike Novogratz Issues Fresh Crypto Warning As Bitcoin Hovers Below $40,000

Digital Galaxy founder and CEO Mike Novogratz says he knows why the crypto markets are getting flushed out lately.

The billionaire tells his 410,000 Twitter followers that as long as bond yields and interest rates go higher, both the stock market and the digital assets market will be under heavy sell pressure.

“As long as rates go higher, we will see pressure on Nasdaq and crypto.”

The business magnate’s warning comes after the US Federal Reserve recently announced it would be raising interest rates on debts this year to counteract the highest inflation rates we’ve seen in four decades.

The crypto industry suffered a widespread pullback today that saw Bitcoin (BTC) drop below the $40,000 mark and top altcoin Ethereum (ETH) tumble down to $2,800, a price it hasn’t seen since last September.

Despite this, interest in investing into crypto assets is on the rise in the financial sector, according to a new report by global business analytics firm FTI Technology.

The paper surveyed 150 US-based decision-makers at financial institutions that have considered investing in digital assets and found that 51% of them view investing in blockchain technology as a high priority within the next 12 months while 44% of them said it is a significant priority. Just 5% said it is a moderate priority.

Furthermore, 88% of respondents said that they’d be at a competitive disadvantage if they do not adopt blockchain technology.

As Preston Fischer, the managing director of FTI Technology’s blockchain and cryptocurrency practice says,

“Investment is beginning to accelerate in digital asset infrastructure across the banking and financial services industry.

Senior leads are recognizing the benefits as they embark to develop strategies for lower cost and faster transactions, access to new markets and facilitation of trustless transactions.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Galaxy Digital CEO Mike Novogratz Says Bitcoin Has Hit The Bottom

Bitcoin has been on a downward streak since the last quarter of 2021, and this has spilled into the new year. As January goes into full bloom, it has come with discouraging movements for investors as over $500 billion has been wiped off the market. This has sent bitcoin’s price down to the dreaded $40,000 price range.

One question that remains in the mind of investors is, has the market seen the bitcoin bottom? Billionaire Mike Novogratz attempts to answer this as he puts forwards his thoughts on the issue and predicts the bitcoin bottom.

Related Reading | TA: Bitcoin Key Indicators Suggest A Strengthening Case For More Downsides

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Bitcoin Should Bottom Out Between $38,000 to $40,000

Galaxy Digital CEO Mike Novogratz has always been an active voice in the crypto space and has at various times given his thoughts on the market. This time around, Novogratz sat down with CNBC’s Squawk Box, where he predicted where the bottom of the current bitcoin downtrend will be.

The billionaire CEO placed the floor of the current downtrend at $38,000 which he does not see bitcoin going under. Currently, bitcoin’s lowest during the dips have been $40,680, from which the digital asset has since recovered. But if Novogratz’s predictions are anything to go by, then the market may see another dip before there is a full-blown recovery trend.

Bitcoin price chart from TradingView.com

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BTC price tumbles down to $41,475 | Source: BTCUSD on TradingView.com

The CEO gives his reason for this bottom as institutional investors taking advantage of the low prices to get into the digital asset. I” know big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy,”  Novogratz said.

“On the charts, $38,000, $40,000 feels like where we should bottom,” he added.

Inflation Will Drive Growth

Continuing on, Novogratz shares more regarding his stance on this predicted bitcoin bottom. One of those has been inflation.

Those who have been following the markets know that rising inflation rates have led to increasing concerns among investors who have begun to look for alternatives to gold to serve as an inflation hedge. Bitcoin has naturally become the option for these investors.

The Fed believes that inflation rates will begin to come down, but the CEO explained that if this does not go as planned, then “all bets are off.”

Related Reading | Melania Trump Congratulates Bitcoin On 13th Anniversary Of Bitcoin Genesis Block

Digital Galaxy, on which Novogratz heads as CEO, has made a name for itself in the space as being a big bitcoin proponent. The company currently holds over 12,000 bitcoins, making it one of the companies with the largest bitcoin holdings in the world.

Mike Novogratz himself also has a personal stake in cryptocurrencies, revealing that he holds about 85% of his net worth in cryptocurrencies, which at the time translated to up to $4.8 billion held by the billionaire in crypto.

Featured image from Stock Hax, chart from TradingView.com

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Mike Novogratz Warns Bitcoin (BTC) Has Much Further To Fall – Here’s His New Forecast

Galaxy Digital CEO Mike Novogratz says that Bitcoin (BTC) isn’t done tumbling yet.

As reported by Bloomberg, Novogratz tells NBC in a new interview that he foresees Bitcoin bottoming out at around the $38,000 to $40,000 price level.

The Galaxy Digital CEO is walking back his comments from last week when he said the top crypto by market cap could hold the $42,000 mark.

Novogratz says that he’s going to wait a bit longer before buying more cryptocurrencies, adding that blue-chip investors are waiting in the wings for their opportunity to get in.

“[There is a] tremendous amount of institutional demand on the sidelines.”

The business tycoon and long-time crypto bull then says that a key part of BTC’s bull run in 2021 was the devaluation of fiat currencies around the world.

The U.S. Federal Reserve recently announced it would be tapering its purchasing of bonds while raising interest rates, which is a contributing factor to Bitcoin’s crash, according to Novogratz.

Popular crypto analyst Michaël van de Poppe has a similar prediction as he tells his 550,000 Twitter subscribers that Bitcoin’s crucial support level sits at $41,000.

“Lost the support at $46,000, but sustained above the crucial threshold at $41,000.

As long as that holds, we’ll be fine for Bitcoin.

Simplicity; more and more people are turning bearish which usually happens the closer we’ll get to a bottom.

Just like bullishness grows upwards.”

BTC is currently trading at $43,019, a 15.5% decrease from its 30-day high of $50,840.

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Russian bank Sber launches blockchain ETF tracking Coinbase, Galaxy Digital

Sber, the Russian government-backed company and the largest bank in the country, is launching a blockchain exchange-traded fund (ETF) to track the performance of major crypto companies such as Coinbase and Galaxy Digital.

Sber Asset Management officially announced the news on Thursday, stating that the new ETF is linked to various blockchain and crypto industry firms, including hardware and software providers for mining and issuing crypto assets.

Called “Sber — Blockchain Economy,” the fund is set to trade under the ticker SBBE and will track the eponymous index developed by Sber’s investment subsidiary SberCIB.

SBBE’s portfolio will include some of the world’s biggest crypto companies, including the United States’ largest exchange Coinbase, Mike Novogratz’s investment company Galaxy Digital and blockchain software provider Digindex.

According to the announcement, Sber’s blockchain ETF will be the “first ETF in Russia to allow investors to make money in the blockchain market without difficulties associated with direct development, buying, holding and selling digital currencies.”

This story is developing and will be updated.