Digital Galaxy founder and CEO Mike Novogratz says he knows why the crypto markets are getting flushed out lately.
The billionaire tells his 410,000 Twitter followers that as long as bond yields and interest rates go higher, both the stock market and the digital assets market will be under heavy sell pressure.
“As long as rates go higher, we will see pressure on Nasdaq and crypto.”
The business magnate’s warning comes after the US Federal Reserve recently announced it would be raising interest rates on debts this year to counteract the highest inflation rates we’ve seen in four decades.
The crypto industry suffered a widespread pullback today that saw Bitcoin (BTC) drop below the $40,000 mark and top altcoin Ethereum (ETH) tumble down to $2,800, a price it hasn’t seen since last September.
Despite this, interest in investing into crypto assets is on the rise in the financial sector, according to a new report by global business analytics firm FTI Technology.
The paper surveyed 150 US-based decision-makers at financial institutions that have considered investing in digital assets and found that 51% of them view investing in blockchain technology as a high priority within the next 12 months while 44% of them said it is a significant priority. Just 5% said it is a moderate priority.
Furthermore, 88% of respondents said that they’d be at a competitive disadvantage if they do not adopt blockchain technology.
As Preston Fischer, the managing director of FTI Technology’s blockchain and cryptocurrency practice says,
“Investment is beginning to accelerate in digital asset infrastructure across the banking and financial services industry.
Senior leads are recognizing the benefits as they embark to develop strategies for lower cost and faster transactions, access to new markets and facilitation of trustless transactions.”
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