Michael Novogratz, the founder of Galaxy Digital Holdings, a prominent digital-asset financial services firm, expects Bitcoin to remain in a relatively narrow trading range in the current quarter.
During a conference call following the release of Galaxy Digital’s first-quarter results, Novogratz expressed his belief that the crypto market is currently in a consolidation phase.
He mentioned that Bitcoin, Ethereum, and other cryptocurrencies like Solana are likely to consolidate as the adoption of cryptocurrencies in traditional finance continues to unfold.
Michael Novogratz Expects Bitcoin to Remain in $55,000 to $75,000 Range
Specifically, he expects Bitcoin to remain within the range of approximately $55,000 to $75,000 until specific market events or circumstances push the prices higher.
The cryptocurrency market has experienced a period of stagnation following the historic bull run observed in the last two quarters.
This surge was primarily driven by the launch of spot US Bitcoin exchange-traded funds and the Bitcoin halving event, which reduced the supply of new tokens.
However, the optimism surrounding interest rate cuts by the Federal Reserve diminished due to consistently strong economic indicators, leading to a downward trend in Bitcoin’s price.
The current base case shows 2 interest rate cuts in 2024 beginning in September.
There’s currently a 10% chance of no interest rate cuts this year at all.
We’re watching to see how these odds change tomorrow.
Follow us @KobeissiLetter for real time analysis as this develops. pic.twitter.com/vsLA02d7pA
— The Kobeissi Letter (@KobeissiLetter) May 15, 2024
Novogratz mentioned the tailwinds experienced in the fourth quarter of the previous year and the first quarter of this year.
“I think that is probably where we are certainly for this quarter, maybe next quarter until either A, the Fed starts cutting rates because the economy finally slows or B, we get through the election and I think the election will bring clarity one way or the other to the crypto regulatory landscape.”
Bitcoin saw a 2.7% decline on Tuesday, with its price dropping to $61,389.
Since reaching its all-time high of $73,797 on March 14, the cryptocurrency has experienced a 16% decrease.
Galaxy Digital Reports Impressive Results for Q1
Galaxy Digital, based in New York, reported impressive results for the first quarter, with net income more than tripling to $421.7 million due to the strong rally in digital assets earlier this year.
Novogratz highlighted the growing adoption of cryptocurrencies in traditional finance, pointing out increased interest and activities such as lending.
He mentioned that lenders are now willing to provide unsecured loans of cryptocurrencies for longer durations, which was not the case just six months ago.
Novogratz emphasized that engagement in the crypto space has reached a new level compared to previous times.
Following Novogratz’s remarks, shares of Galaxy Digital rose around 1% to $9.28 as of 10:15 a.m. in New York.
The stock has gained approximately 23% so far this year, reflecting the positive sentiment surrounding the company.
On the other hand, technical analyst Rekt Capital believes that Bitcoin has emerged from the post-halving “danger zone” and entered an accumulation phase, as indicated by weakening selling pressure.
“The Post-Halving Bitcoin “Danger Zone” (purple) is officially over,” the popular crypto trader wrote in a recent post on X.
“And Bitcoin is celebrating with a good bounce from the Re-Accumulation Range Low support.”
The Bitcoin “Danger Zone”
The Bitcoin Pre-Halving “Danger Zone” (orange) is where historical Pre-Halving Retraces have begun
Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving
This cycle was no different and here’s why:
Because… pic.twitter.com/Zb1mk1Cn5E
— Rekt Capital (@rektcapital) April 25, 2024