Why Bitcoin’s Price Still Controls the Crypto Industry, According to Novogratz
Michael Novogratz, founder and chief executive of Galaxy Digital, says crypto companies remain tightly tied to Bitcoin’s price and are unlikely to fully break that link for another three to four years.
Speaking about Galaxy’s business model, Novogratz said that even diversified crypto firms cannot escape market cycles yet, because most of their revenues are still directly linked to digital asset prices.
“If Bitcoin falls 30%, your revenue falls 30%,” he said, pointing to asset management, staking, and trading businesses where income is calculated as a percentage of the underlying crypto asset.
Why Price Dependence Still Matters
Novogratz explained that even if a crypto firm held no digital assets on its balance sheet, it would still…
