According to Michael Novogratz, CEO of Galaxy Digital, retail investors have played a key role in the development of the cryptocurrency, and interest in the space will continue despite the recent sell-off. “What has surprised me throughout this cycle, starting in 2013, is the resilience of retail,” he said Tuesday on CNBC’s “Squawk Box.” “They just keep coming back… Younger kids especially see crypto as their generational way of participating in the markets,” he said, before admitting that “retail has suffered a lot.” “This has been an industry that has gone through several cycles. This is the most painful because it is coming from the largest market cap, and it has done real damage,” he said. Bitcoin, the world’s largest cryptocurrency, fell below $21,000 on Tuesday as investors pulled out of space. Massive inflation and the prospect of higher rates have weighed on the crypto assets as well as the broader market. “I’m sure it would take a lot of head-scratching to know what went wrong, but it all hurts retail confidence,” he said, noting that regulators are supposed to protect retail investors. “I think that confidence is going to be down for a while, but I’m pretty sure it will come back,” Novogratz said. The long-term crypto bull market believes that a bottom line for digital coins, including bitcoin, may be near. “We have moved to the level that I think should be close to the bottom: $20,000 bitcoin, $1,000 ethereum. There has been a tremendous amount of dedication and fear,” Novogratz said. “It’s not usually a good area to sell … That doesn’t mean we can’t go down. I think the macro environment is still very challenging here.” Bitcoin is now down almost 70% from its all-time high since November 2021. — CNBC’s Yun Lee contributed reporting.