(Bloomberg) -- Mike Novogratz, the founder and chief executive officer of Galaxy Digital Holdings Ltd., said that cryptocurrencies are closer to a “bottom” than the U.S. equity market.

Both sectors tumbled Monday as investors brace for a more hawkish Federal Reserve to ratchet up interest rates, raising the risk of a US recession. Crypto has been especially hit hard with the lending platform Celsius halting withdrawals on Monday. 

Bitcoin, the largest digital asset, fell as much as 17% to $22,603, while smaller rival Ether dropped as much as 21% to $1,165. They’ve slumped 67% and 74% respectively since hitting record highs in early November.

“Ethereum should hold around $1,000 and it’s $1,200 right now. Bitcoin is around $20,000, $21,000 and it is $23,000, so you are much closer to the bottom in crypto than you are where I think, stocks, are going to have another 15% to 20%” decline, Novogratz said at the Morgan Stanley Financials Conference. 

The benchmark S&P 500 Index has declined about 22% from its record high in early January.

“Until I see the Fed flinch, until I really think, OK the economy is so bad, and the Fed is going to have to stop hiking and even think about cutting, I don’t think it is time to really deploy lots of capital,” Novogratz said.   

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