Towards the end of 2021, the crypto market has dipped and is now making strides to recover. In the last 24 hours, Bitcoin, Ethereum, and all other top altcoins have seen recovery losses.
Some analysts believe 2022 will be bullish, while some veterans think otherwise. Cryptocurrencies are expected to have a difficult start in 2022, according to Mike Novogratz, CEO of crypto behemoth Galaxy Digital. He says Crypto has come off a lot from the highs and it trades heavily.
The present stock market correction, he explained, might throw a wrench in the works for crypto. From a technical standpoint, he points out that the price charts of Apple, Tesla, and Nvidia, the companies that dominate the roost in the US equities market, are now broken. As a result, he expects stocks to struggle in December and have a slow start in January.
The non-fungible token frenzy, according to Novogratz, is an indication of excessive froth in the market.
Furthermore, many will be required to pay taxes or accept gains in order to purchase real land, according to the crypto billionaire.
“You are seeing some indigestion. It’s probably healthy. If you are long, it feels painful.”
Midterm outlook positive
The crypto billionaire claims that he is unconcerned about the status of the crypto market in the medium run since he sees individuals preparing to enter the market all the time.
Bulls will most likely be able to hold the crucial $42,000 support level, according to Novogratz.
To illustrate his point about money streaming into the business, he referenced NYDIG’s enormous $1 billion fundraising round, which was revealed earlier this year.
According to Novogratz, Bitcoin transitioned from not being an institutional asset class to being an intuitional asset class this year.
Defi on the Rise!
Although investors were not enthusiastic about decentralized finance projects in 2021, Novogratz believes that would change next year.
According to the CEO of Galaxy Digital, the DeFi will most certainly reign supreme in 2022.
Novogratz also blames the sector’s poor performance on “know-your-customer” problems, which he feels can be resolved.