The exodus of the forced sale made CRYPTOCURRENCIES partially resilient in the past month, according to Galaxy Digital Holdings founder Mike Novogratz.

Speaking at a conference in Singapore, Novogratz noted:

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

Significant leverage has engulfed the cryptocurrency market, triggering a bearish streak.

However, Novogratz acknowledged that cryptocurrencies would take off again once Federal Reserve (Fed) eased aggressive monetary tightening, but this would not happen sustainably until Web3 projects experienced mass adoption.

He added:

“Many crypto hedge funds will not survive the 2022 rout in virtual currencies. 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 be hidden from law enforcement.

The fall of TerraUSD (UST) and Luna, which led to the loss of $60 million of investor funds following the bearish market outlook, has seen cryptocurrency platforms witness the lowest amount of participation in two years due to the output of weak hands. Santiment Market Knowledge Provider explained:

“If it seems that there are less people commenting and showing interest in cryptocurrencies these days, your intuition is correct. Comments haven’t been this sparse since the end of 2020. Twitter has had a steep decline especially in the last month.”

For its part, Santiment acknowledged that profit-taking tendencies emerged after Bitcoin closed the $20,000 mark and said:

“Apparently a lot of merchants were waiting for the $20k threshold to start selling their bags. When Bitcoin crossed back above this psychological level, massive profit-taking ensued.”

Therefore, time will tell how cryptocurrencies continue to develop amid a tight macroeconomic environment.

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