Cryptocurrencies
Novogratz Says He Was ‘Darn Wrong’ on Crypto Leverage Risks
- Billionaire says ‘worst is over’ and that Bitcoin will surge
- Calls out regulators for not doing enough to protect investors
Mike Novogratz
Photographer: Eva Marie Uzcategui/BloombergThis article is for subscribers only.
Mike Novogratz, the billionaire investor who once called himself the “Forrest Gump of Bitcoin,” said the recent turbulence in the cryptocurrency industry is a “full-fledged credit crisis” and acknowledged that he was “darn wrong” about the magnitude of the leverage in the system.
“What I don’t think people expected was the magnitude of losses that would show up in professional institutions’ balance sheets and that caused the daisy chain of events,” Novogratz said at the Bloomberg Crypto Summit Tuesday. “It turned into a full fledged credit crisis with complete liquidation and huge damage on confidence in the space.”