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Bitcoin will stay below $75,000 until US elections or Fed cuts rates, says Novogratz
Bitcoin will stay below $75,000 until US elections or Fed cuts rates, says Novogratz
According to Mike Novogratz, CEO of cryptocurrency investment firm Galaxy Digital, the price of Bitcoin could remain stuck between $55,000 and $75,000 for the next few months.
Novogratz said during Galaxy’s first-quarter earnings call that he sees Bitcoin consolidating in that range until the upcoming US presidential election provides clarity on cryptocurrency regulation, or the Federal Reserve begins cutting interest rates due to an economic slowdown.
“We are in a phase of consolidation in the cryptocurrency industry,” Novogratz declared. “Bitcoin, Ethereum and everything else is going to consolidate, what does that mean? It probably means somewhere between $55,000 and $75,000 until the next set of circumstances, the next set of market events takes us higher.”
Bitcoin has traded in a range of $55,000 to $75,000 since late February, after hitting a new all-time high above $73,000 in March following the launch of Bitcoin spot ETFs and the latest bitcoin halving event .
While some expected that the launch of the Bitcoin ETF would continue to generate huge institutional inflows, this has not yet materialized, according to Novogratz. However, he said the slow process by which wealth managers offer crypto products to clients is still steadily pushing for wider adoption in traditional finance.
Looking ahead, Novogratz believes that the US presidential election could be crucial to the regulatory future of cryptocurrencies, depending on whether or not Democrats maintain an anti-cryptocurrency stance. The Biden administration recently signaled that it will veto overturning a rule requiring cryptocurrency companies to record customer holdings as liabilities.
“It was simply interpreted to the crypto community as Democrats saying no to cryptocurrencies,” Novogratz noted, in contrast to Donald Trump’s comments that implied he would be more pro-crypto if re-elected.
Separately, a rate cutting cycle by the Fed in response to economic weakness could also boost cryptocurrency prices, according to the Galaxy CEO.