Galaxy Digital CEO Mike Novogratz said in an interview with CNBC that he does not believe in the possibility of lowering the price of the first cryptocurrency to $13,000.

“Can we go down? Of course we can. It feels like we’re 90% through this leverage reduction,” he says. @novogratz on #crypto. “The problem is you need narrative to get much higher, to go much higher, and you need new capital to come in.” pic.twitter.com/aoWFcorWhX

— Squawk Box (@SquawkCNBC) July 7, 2022

“Can we go down? Of course. I have a feeling we’re over 90% of this debt reduction. […] The problem is that further growth requires more faith and new capital,” he said.

According to Novogratz, centralized companies in the cryptocurrency market had too many leveraged positions, which led to the bankruptcy of some.

It also predicted a sideways trend in the digital asset industry until the US Federal Reserve (Fed) stopped raising the base rate.

Earlier, Tron founder Justin Sun said that the current debt reduction process is “going through its worst period”.

Recall that in June Novogratz predicted that the stagnation in the cryptocurrency market will continue for 18 months. He believes the industry will see the first signs of recovery after the Fed loosens monetary policy.

That same month, American rapper Snoop Dogg stated that the current crisis will benefit the digital asset market and eliminate “those who abuse opportunities”.

Ruchir Sharma, chairman of the Rockefeller International management company, noted that for Bitcoin to be sustainable again, it needs to get rid of excessive leverage.

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