Floki Inu Soars to New Heights in the Cryptocurrency Market
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2022-05-10 | Selina Mathew
Bitcoin and other cryptocurrencies fell substantially in the first quarter, owing in part to a shift in central bank policy.
Galaxy Digital Holdings, a cryptocurrency investment manager, reported a steep loss in the first quarter owing to unrealized losses in its digital asset portfolio, signaling more volatility in the digital asset industry in 2022.
Galaxy Digital recorded a net comprehensive loss of $111.7 million in the quarter ended March 31, compared to a gain of $858.2 million in the same period in 2021, according to the company's announcement on Monday. Galaxy's overall losses were ascribed to investments in its trading and investing operations, in addition to unrealized losses in its digital asset portfolio.
Asset management, investment banking, and mining businesses were all profitable, according to the company. During the quarter, investment banking and mining reported record revenue and net comprehensive income.
Galaxy Digital Asset Management's assets under management fell 5% to $2.7 billion in the third quarter.
Galaxy's deteriorating income in the first quarter paralleled the digital asset market's extraordinary volatility, with Bitcoin (BTC) and altcoins seeing several big losses. Due to Bitcoin's strong association with other risk-on assets, the market seems to be approaching a capitulation period in May.
Since the US Federal Reserve and other central banks chose to aggressively pursue rate hikes to tackle skyrocketing inflation, risk assets, including crypto, have plummeted. The Federal Reserve raised interest rates by 50 basis points last week, the greatest increase in nearly two decades.
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