Galaxy Digital founder Michael Novogratz expects Bitcoin to trade in a narrow range for now

Last Updated: May 15, 2024 7:24am EDT | 2 minute read

Michael Novogratz, founder of Galaxy Digital Holdings, a major digital asset financial services company, expects Bitcoin to remain in a relatively tight trading range in the current quarter.

During a telephone conference Following the release of Galaxy Digital’s first quarter results, Novogratz expressed his belief that the cryptocurrency market is currently in a consolidation phase.

He said Bitcoin, Ethereum and other cryptocurrencies like Solana will likely consolidate as cryptocurrency adoption in mainstream finance continues to develop.

Michael Novogratz expects Bitcoin to remain in the $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 prices higher.

The cryptocurrency market has been experiencing a period of stagnation following the historic bull run observed over the past two quarters.

This surge was primarily driven by the launch of US Bitcoin exchange-traded funds and the Bitcoin halving event, which reduced the supply of new tokens.

However, optimism regarding interest rate cuts by the Federal Reserve has waned due to consistently strong economic indicators, leading to a downward trend in the price of Bitcoin.

Novogratz mentioned the tailwinds seen in the fourth quarter of last year and the first quarter of this year.

“I think this is probably where we are for this quarter, maybe the next one until A, the Fed starts cutting rates because the economy finally slows down, or B, we get through the election and I think the elections will bring clarity one way or another. the other to the regulatory landscape of cryptocurrencies.”

Bitcoin fell 2.7% on Tuesday, with its price falling to $61,389.

Since reaching its all-time high of $73,797 on March 14, the cryptocurrency has seen a 16% decline.

Galaxy Digital reports impressive results for the first quarter

Galaxy Digital, based in New York, reported this Impressive results for the first quarterwith net profit more than tripling to $421.7 million thanks to a strong rally in digital assets earlier this year.

Novogratz highlighted the growing adoption of cryptocurrencies in traditional finance, pointing to an increase in interest and activities such as lending.

He said lenders are now willing to provide unsecured cryptocurrency loans for longer periods, which was not the case just six months ago.

Novogratz highlighted that engagement in the crypto space has reached a new level compared to previous times.

Following Novogratz’s comments, Galaxy Digital shares rose about 1% to $9.28 as of 10:15 a.m. in New York.

The stock has gained about 23% this year, reflecting the positive sentiment surrounding the company.

On the other hand, technical analyst Rekt Capital believes that Bitcoin emerged from post-halving “danger zone” and has entered an accumulation phase, as indicated by weakening selling pressure.

“Bitcoin’s (purple) post-halving “danger zone” is officially over,” the popular cryptocurrency trader wrote in a recent X post.

“And Bitcoin celebrates with a good bounce from the Re-Accumulation Range Low support.”

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