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In a recent interview with Bloomberg, the CEO of crypto-focused investment firm Galaxy Digital, Mike Novogratz talked about cryptocurrencies, NFTs, DeFi, the policy of the US Federal Reserve System, and what developments he expects.
The businessman finds the lowest level that Bitcoin may fall is $42.000.
According to Novogratz, DeFi will continue to grow, and next year could be the year of DeFi. He believes DeFi protocols are going to disrupt traditional finance. The total value locked in various decentralized finance platforms went up from $6 bln to $250 bln this year. Novogratz says what holds back institutions from using DeFi is KYC issues. He expects the issues to be solved in 2022. Galaxy Digital CEO predicts the problem will be solved technologically and through regulations, and then the industry will see an explosion.
Novogratz said although currently, cryptos trade heavily, it doesn't worry him medium term. The billionaire mentioned the growing investments in the crypto space and how the mindset has changed. He also emphasized that crypto has turned into an institutional asset class.
With so much money flowing into space it makes no sense that the Bitcoin price will go much below $42.000, said Novogratz.
Galaxy Digital CEO said NFTs are the most important thing that happened in crypto in 2021 as they drive further growth of the industry and show that web3 isn't only about finance. As a reason for the fall in prices, the businessman mentioned that it's the end of the year and people tend to sell things.