There is no denying that Nasdaq and Galaxy Digital are two of the most well-known names in the world of digital currencies. What is the connection between these two giants? Galaxy Digital is a subsidiary of Nasdaq, and the two companies have been working together since 2018.
The partnership between Nasdaq and Galaxy Digital is a strategy to help legitimize and grow the digital currency market. Nasdaq provides Galaxy Digital with the expertise and infrastructure needed to support a large-scale digital asset exchange. At the same time, Galaxy Digital brings its deep knowledge of the digital currency space to the table.
Nasdaq Selloff and Galaxy Digital CEO’s Comment Regarding its Downfall
Since early March, the Nasdaq COMP +0.21 percent has been in unknown territory. The index, which has far more than 50% of its market capitalization in tech stocks, hit an all-time peak on November 19 last year and is currently down by 29% out of that point. On 8th May, it fell 3.18 percent.
As predicted by Galaxy Digital CEO Mike Novogratz, the major stock market sell-off isn’t done yet, and the economy is in for a lot more volatility.
The remarks came after the day the Dow Jones Industrial Average fell over 1,000 points, and the Nasdaq fell 5%, marking the worst days for both indices since 2020. The stock market continued to fall last week.
It’s feasible that the Nasdaq will exceed 12,000 in the following weeks, or possibly an “ultimate destination” of 10,000, according to the analyst. Novogratz stated to CNBC, “I do think there’s more pain to come. What you’re seeing now is big liquidation. Some of the big hedge funds are down, which often leads to liquidation, and “the market senses blood.”
Selloffs are difficult to trade, and he predicts “vicious” market crash rallies. However, he warned that the monetary policy of the Federal Reserve would not be able to give a smooth landing.
As authorities aim to bring costs down out of its 40-year high, the Central Bank boosted benchmark rates by 50 percent on May 8, following a 25-basis-point hike in March. It also announced measures to decrease its balance sheet.
Nasdaq’s sell-off downfall also has the power to affect the Indian market. India has various hedge funds from Nasdaq. The two best Nasdaq hedge funds in India are Motilal Oswal NASDAQ 100 Exchange Traded Fund and Motilal Oswal Nasdaq 100 FOF – Regular Plan.
Novogratz said, when inflation reaches critical levels, the only way to stop it is to push the economy into recession. You won’t see inflation decrease until there are no more layoffs. We’re about to face a horrible period of stagflation, and we’ve entered the fray.