Galaxy CEO: Long-term holders are beginning to adjust their asset allocations, and diversified holdings are putting short-term pressure on prices.

ChainCatcher reports that Galaxy CEO Mike Novogratz posted on X stating that the cryptocurrency market has been very sluggish recently. After a prolonged bull run, many long-term holders are beginning to readjust their asset allocations, diversifying investments and reducing concentrated holdings. In the medium to long term, diversification is beneficial for market development, but in the short term, it may put downward pressure on prices. Currently, the crypto market has not reached a cyclical peak. By the end of this year, the Federal Reserve may appoint a new chair, whose stance is expected to be more dovish than the market is used to. Novogratz hopes this could serve as a catalyst for the next rally.