Galaxy Digital has been having it quite rough this year due to the unfavorable cryptocurrency market through which the company lost a whopping -$136 Million in the first three quarters.
Galaxy Digital holdings which is a cryptocurrency merchant reported a -$76.65 million loss in Q3. The loss reported in the third quarter added to the consistent streak of losses which was the same case in the first and second quarter. The total losses for Q1, Q2 and Q3 in 2018 add up to -$136 Million.
— Crypto economy (EN) (@CryptoEconomyEN) November 29, 2018
Declining cryptocurrency prices cause more worry for Galaxy Digital
The cryptocurrency merchant’s share price dropped by 55 percent this month marking its biggest drop yet. The share price decline is consistent with the prevailing bearish trend in the cryptocurrency market, especially the downward spiral that took place last week.
“The current quarter loss was largely a result of realized loss on digital assets, unrealized loss on investments, an impairment loss on goodwill and equity based compensation accruals,” a recent Galaxy Digital report revealed.
Galaxy Digital attributes the losses and poor performance to the low cryptocurrency trading volumes. This is due to the prevailing bear market since early 2018 after concluding 2017’s massive bull charge that saw prices skyrocket to impressive levels. Mike Novogratz, the company’s founder admitted that 2018 has been a challenging year. However, he expects cryptocurrency prices to improve in 2019.
Novogratz is optimistic about the cryptocurrency market’s performance in the future
Novogratz also predicted in a Financial Times interview that financial institutions will focus on direct cryptocurrency investments instead of cryptocurrency fund investments. Novogratz also predicted a month ago that Bitcoin’s price will skyrocket past the $20,000 mark in 2019. Well, this year is almost winding up but cryptocurrency prices continue to show weakness. However, that is not to say that prices will not recover. If anything, cryptocurrency prices demonstrated in the past that they are quite volatile and anything can happen.
It would thus not be surprising to see cryptocurrencies start riding the bulls in 2019. Despite all the forecasts, the cryptocurrency market remains highly unpredictable.