Tim Grant, a key executive at blockchain investment firm Galaxy Digital, believes that NFTs will increase again in the near future. He stated that NFTs are experiencing a boom and bust cycle.
As the macroeconomic situation continues to influence Bitcoin, the NFT market has yet to witness a booming environment following last year's surge.
Tim Grant, a key executive at blockchain investment firm Galaxy Digital, believes that NFTs will increase again in the near future. He believes that the activities of central banks and policymakers will continue to have an influence on Bitcoin's performance.
Bitcoin’s Macro Correlation
Grant emphasized that Bitcoin volatility might be affected by macroeconomic factors. Referring to last week's attack on the Binance smart chain, Grant stated that there is a possibility of future hacks. However, he added that more price drops are highly doubtful in the aftermath of the breaches.
For the past few months, Bitcoin (BTC) has been hovering around the $20,000 mark. According to CoinGabbar statistics, the Bitcoin price is currently trading at $19,032, down 2.27% in the last 24 hours.
“Bitcoin is no longer a retail asset class, thus the macro background affects it in the same way that it affects any other asset class. The future pattern of Bitcoin's graph will be determined by the macro scenario. The Federal Reserve, as well as policymakers in Europe and the United Kingdom, will have an influence on Bitcoin.”
‘NFT Glory Back Soon’
In reaction to the drop in NFT values, he stated that NFTs are experiencing a boom and bust cycle. Following a surge in interest for acquiring NFTs last year, demand has dropped dramatically. This sparked discussion over whether the early enthusiasm for NFTs is sustainable. According to the Galaxy CEO, there are a few projects working on NFTs that might restore the glory in the near future.
Galaxy CEO added that “we are witnessing an institutional acceptance of major brands and luxury brands. There has been a lot of discussion about the Metaverse and its collision with NFTs. In the background, there are several initiatives that might restore interest in NFTs in a few years. In the long run, we envision a more positive backdrop for NFTs.”