Mike Novogratz, CEO of crypto giant Galaxy Digital, expect cryptocurrencies to have a rocky start in 2022:
Crypto has come off a lot from the highs. It trades heavy.
In a recent interview with CNBC, he said that crypto could go either “sideways” or “down,” excluding a bullish scenario.
He explained that the ongoing stock market correction could throw a wrench into the works for crypto. He points to the fact that the price charts of Apple, Tesla, Nvidia, the companies that rule the roost in the U.S. equities market, are now broken from a technical perspective. Hence, he expects equities to perform poorly in December and have an underwhelming start in January.
Novogratz also pointed to the non-fungible token craze as a sign of excessive froth in the market.
On top of that, many will have to pay taxes or take some profits in order to buy real estate, says the crypto billionaire:
You are seeing some indigestion. It’s probably healthy. If you are long, it feels painful.
Novogratz’s mid-term outlook
The crypto mogul says that he’s not worried about the state of the crypto market in the mid-term because he constantly sees people getting ready to dive into the space.
Novogratz has reiterated that bulls will likely be able to hold the pivotal $42,000 support level.
He mentioned NYDIG’s massive $1 billion funding round that was announced earlier to date to make his point about money flowing into the industry.
This year, Bitcoin went from not being an institutional asset class to being an intuitional asset class, according to Novogratz.
A big year for decentralized finance
While investors didn’t show much love for decentralized finance projects in 2021, Novogratz expects things to change next year.
The Galaxy Digital boss says that the DeFi will likely reign supreme in 2022.
Novogratz also attributes the sector’s underperformance to “know-your-customer” issues that he believes can be fixed.