The ex-Goldman Sachs executive Mike Novogratz has said there could be more “pain ahead” regarding the plummeting Bitcoin price.
He noted though, that he hopes the price of the largest digital asset would hold at about $42,000.
For Bitcoin, “$42,000 is at a pretty important level, and low 40s should hold,” Novogratz said, before adding that Bitcoin “trades heavily” as people start to sell assets at the end of the year, but he isn’t worried about Bitcoin prices in the “medium-term”.
Bitcoin, trading at $47,912 at the time of writing, plunged around 30% from its record high of $69,000due to diminishing government and central-bank stimulus efforts.
“So much money is pouring into the space, it would make no sense that the crypto prices would go much below that,” Novogratz said.
“If you’re long, it feels painful, but it’s probably healthy.”
Novogratz, who is a huge Bitcoin advocate, also said he expects 2022 to be the year of DeFi through which financial transactions can be done automatically without an intermediary.
DeFi “got unloved” this year as issues related to ‘Know-your-customer’ policies hurt its prospects for institutional adoptions, but that can be solved in 2022, Novogratz said.
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