Galaxy Digital CEO: Bitcoin may continue to consolidate early next year, DeFi will dominate 2022

Time:2021-12-29 Source: 1046 views DeFi Copy share

In an interview with CNBC last week, Mike Novogratz, chief executive of cryptocurrency fund giant Galaxy Digital, said that cryptocurrencies will have a difficult start in 2022, saying that they may continue to trade sideways or fall, but not including bullish conditions.

He explained that the stock market is undergoing adjustments at this stage. Technology companies such as Apple, Tesla, and NVIDIA, which dominate the U.S. stock market, are experiencing weakness in recent price trends. Bringing trouble to the trend of cryptocurrencies; he predicts that the overall stock market will not perform very well in December and January next year.

In addition, Novogratz also pointed out that the recent NFT boom is a sign of excessive market bubbles! But Novogratz also reiterated his previous prediction that the bulls may hold the key support level of Bitcoin at 42,000 USD (before the deadline, Bitcoin is reported to be 48,123 USD). He previously stated in an interview in August: I think I can hold at 42,000 USD. , This should be the bottom of this trend. If it is less than $40,000, I would be surprised.

Prospective to the future

Talking about the longer-term development of cryptocurrency, Novogratz said: He is not worried about the development of the cryptocurrency market in the medium term, because he sees many people preparing to enter the field.

According to previous reports, Bloomberg’s senior ETF analyst Eric Balchunas tweeted on his personal Twitter on the 10th that there are currently 78 public cryptocurrency funds in the world (more than doubled over the same period last year), and in the United States alone, there are more than 40 cryptocurrency-related ETFs are applying for registration with the SEC.

He believes that digital assets will become the 5.0 stage of ETF. And the total assets of 78 existing cryptocurrency funds will be as high as 66 billion U.S. dollars, and it is expected that this scale will exceed 1 trillion U.S. dollars within 10 years.

One of the world’s four largest accounting firms, Ernst & Young (EY), recently released a new research report stating that 31% of hedge fund managers, 24% of alternative investors, and 13% of private equity managers stated that they plan in the future Within one to two years, add cryptocurrency to their portfolio.

2022 is an important year for decentralized finance

Another noteworthy point is that Novogratz said that although investors did not show their love for decentralized finance (DeFi) projects in 2021, he expects that the situation will change next year; DeFi may dominate in 2022 Status, the regulator’s concern about DeFi’s inability to obtain personal data (KYC) is also expected to be resolved.

According to data from DefiLlama, the total amount of locked positions in DeFi's entire network has soared since this year, reaching a scale of 240 billion U.S. dollars before the deadline. Various new platforms have also sprung up after the rain. The top 5 DeFi protocols currently ranked by lock-up amount are:

1.Curve (20.9 billion U.S. dollars)

2.Maker ($17.6 billion)

3.Aave ($15.6 billion)

4.Convex Finance ($13.3 billion)

5. Instadapp ($12 billion).

Disclaimer : The above empty space does not represent the position of this platform. If the content of the article is not logical or has irregularities, please submit feedback and we will delete or correct it, thank you!

Top News