Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
- Mike Novogratz says its challenging and difficult to grow businesses in bear markets
- Despite Bear Markets Crypto Businesses show a healthy sign of growth with resource allocation
- Blockchain Projects are hiring at a rapid pace
Challenging to grow businesses in Bear Markets: Mike Novogratz
As prices remain under pressure, one of Wall Street’s greatest crypto advocates Mike Novogratz has gone on record saying that “It sucks to build businesses in a Bear Market” . Mike stated the same as 2018 was, indeed, a bearish year for cryptocurrencies and especially Galaxy Digital, with the company’s shares dropping 37 percent since they were first listed on Canada’s TSX Venture Exchange at the start of August. It also posted losses of $134 million in the first quarter, driven by $85.5 million in unrealized losses on digital investments and $13.5 million in total losses from its trading arm. During the second quarter, Galaxy Digital posted net income of $35 million, with $44.8 million in unrealized gains and a reduction of its trading losses to $1.1 million.
Things looked really difficult for Galaxy in 2018, but the pessimism by Mike Novogratz is clearly not justified. As it is difficult to build businesses in any market environment, bear market definitely do pose challenges but they need to continuously evolve to meet the clients need in all market conditions
Cryptobusiness continue to grow and hire despite market slow down
While cryptocurrencies are at all time low and challenges continue to bother growth, some businesses continue to grow especially the crypto exchanges. The prices of cryptocurrencies haven’t been able to dampen the interest in them as everyone still wishes to have a piece of this “new money.” Be it any exchange, they have grown significantly in terms of new clients. And it’s not just crypto exchanges, the crypto industry is shining brightly at the moment. Despite the bear market and broader market conditions, blockchain projects are hiring at a rapid pace. This recent study from Glassdoor.com confirms that bitcoin and blockchain roles have never been in greater demand.