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Galaxy Digital CEO Mike Novogratz says the past year has been excellent for cryptocurrency, and the bull run in the DeFi and NFT sectors was a major step toward mainstream adoption.
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Novogratz believes any new Bitcoin sell-off will find key support around $42,000.
Galaxy Digital CEO Mike Novogratz remains bullish on Bitcoin, saying he is not worried about the cryptocurrency’s flagship status or the market’s near-term outlook given the amount of investment flowing into the sector.
The billionaire investor notes that the year is ending and many investors are selling holdings, including cryptocurrencies, which have risen sharply recently. He also points out that digital assets are trading slightly lower at the moment, but that does not trouble him greatly.
“It doesn’t worry me over the medium term because everywhere I go I see people preparing to invest in the cryptocurrency space,” Novogratz told Bloomberg TV.
According to the Galaxy Digital chief, broader equity markets will likely remain “messy” as the year closes and possibly extend into the first quarter of 2022. In crypto, he foresees a scenario where prices drift “sideways” downward as people sell to pay taxes or buy real estate.
When asked what he thinks would be Bitcoin’s floor price or an entry point, Novogratz pointed to $42,000. He said that level, or the lower 40-thousand range, is a “pretty important level” that should hold if prices fall from current levels.
He notes that Bitcoin trading began the year around $30,000, and sentiment has shifted substantially over the course of 2021. As an example, he referenced a recent trip to the Middle East where he said two of the region’s “largest pools of capital” are planning to get involved in Bitcoin mining.
Novogratz says venture investments exceeding $30 billion have been made and that so much money is entering crypto that it would be unreasonable to expect prices to fall far below where they began the year.
He also spoke about how massive this year was for NFTs, noting that the sector could remain highly interesting going forward.
Another area he expects to do well in 2022 is decentralized finance (DeFi) and Web 3.0. On DeFi, he points out that an incredible amount of capital is tied up in various projects, while Web 3.0 represents “the next evolution of the internet” that many investors do not want to miss out on.