Galaxy Digital CEO Mike Novogratz says the 'dog days of summer' came early for crypto as bitcoin posts worst month since November

• The crypto market rally seems to be stalling as bitcoin notched its first monthly loss since November.
• Galaxy Digital CEO Mike Novogratz explained why cryptos have been largely trading sideways.

The cryptocurrency market's 2023 rally is cooling as bitcoin notched its first monthly loss of the year.

Bitcoin and ethereum shed 6% and 1% in May, respectively, but both remain well over 50% year to date, per Messari data.

Galaxy Digital CEO Mike Novogratz said the "dog days of summer" came early for the trillion-dollar crypto industry as major tokens continue to trade sideways.

"Crypto's lackadaisical right now. There's a constant bid from retail. We're seeing it through all the platforms," he told CNBC on Thursday, referencing Chinese social media giant WeChat's recent digital yuan integration. "There's not a lot of institutional excitement right now."

The bitcoin bull added: "The dog days of summer started early in crypto. That doesn't make me thrilled. That's just the reality."

Risk assets are typically sensitive to tighter monetary policy, and top central banks are expected to continue their hawkishness.

The Federal Reserve has delivered 10 consecutive interest rate hikes since March of 2022 in an attempt to tame high inflation, and some key policymakers have hinted at more to come. Wall Street now sees higher odds of more increases after largely predicting a pause.

Meanwhile, European Central Bank has been tightening as well and recently signaled that it's not done hiking either.