Crypto billionaire Mike Novogratz expects the price of the largest digital asset to hold at around $42,000 after seeing Bitcoin drop nearly 30% last month. But even so, it does not rule out the possibility that there may be more pain ahead.
Galaxy Digital Holdings CEO, Novogratz, stated in an interview with Bloomberg TV that $42,000 is a very important level for Bitcoin. According to Novogratz, Bitcoin is not gaining momentum as people start selling in asset classes at the end of the year, but the famous CEO is not worried about Bitcoin prices in the “medium term”. “Cryptocurrencies have lost a lot from their peak. They are heavily traded.” made the statement. Novogratz expects cryptocurrencies to get off to a rough start in 2022.
Currently trading at $47,368, Bitcoin is down almost 30% from the record high of $69,000 reached about a month ago as government and central bank stimulus efforts waned. “Too much money is flowing into the space, it doesn’t make sense for crypto prices to go below that,” Novogratz said.
“Probably this is a healthy condition but if it is long it will be painful.”
Galaxy Digital, which provides crypto-related financial services for institutional clients, is currently listed on the Toronto Stock Exchange but aims to be listed in the US in the first quarter of next year.
Besides, Novogratz expects 2022 to be the year of DeFi (decentralized finance), where financial transactions can be made automatically without an intermediary. Novogratz said DeFi was “unpopular” this year as problems with “know your customer” policies have hurt hopes of corporate adoption, but that it could be fixed in 2022.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.