Crypto and AI to See Major Activity Boost, Mike Novogratz’s Galaxy Digital Predicts
Galaxy Digital, which is led by crypto mogul Mike Novogratz, has predicted a significant surge in activities within the crypto and AI sectors.
The firm anticipates an increase in protocol adoption and venture investment, primarily driven by the growing demand for GPUs.
These GPUs are essential for training and running AI models, with even the most established compute providers now beginning to roll out dedicated servers for AI-related tools.
Other key predictions
Galaxy Digital’s analysts have also made several other key predictions for the crypto world. Bitcoin ETFs in the U.S. are expected to attract significant inflows, reshaping the functioning of bitcoin markets and influencing asset managers, brokers, and exchanges across crypto and traditional finance.
The upcoming Bitcoin halving event is anticipated to pose challenges for miners, potentially leading to consolidation. However, this coincides with global central banks’ monetary easing, presenting a strong narrative for Bitcoin.
Ethereum’s journey towards modularity is set to continue, with upgrades supporting Layer 2 solutions and incorporating technologies like restaking.
However, Ethereum will face stiff competition from alternative blockchains like Solana and potentially Bitcoin, which might see renewed interest as a platform.
Despite the growth in decentralized finance (DeFi), it’s not expected to challenge traditional finance in 2024. However, innovations within DeFi will contribute to the evolution of on-chain landscapes. The focus on tokenization remains a key trend, even as real-world asset growth on-chain may stall.
Stablecoins, particularly those based outside the U.S., are expected to see an increase in supply and usage, driven by a resurgent crypto market.
Novogratz remains bullish
As reported by U.Today, Novogratz remains bullish on Bitcoin in 2024. Countering some bearish pundits, he anticipates that Bitcoin will trade higher.
The crypto mogul believes that while investors might sell their holdings in Grayscale Bitcoin Trust, they are likely to reinvest in other Bitcoin ETFs, with BTCO being a favored option.
