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Galaxy’s Novogratz Sees Bitcoin Stuck in a $55,000 to $75,000 Range for Now
(Bloomberg) — Michael Novogratz, founder of digital asset financial services firm Galaxy Digital Holdings Ltd., said Bitcoin will likely remain stuck in a relatively tight trading range for at least the current quarter as cryptocurrency adoption in traditional finance continues.
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“We are in the consolidation phase in the cryptocurrency industry. Bitcoin, Ethereum and everything else, Solana will consolidate, what does it mean? That probably means somewhere between $55,000 and $75,000 until the next set of circumstances, the next set of market events takes us higher,” Novogratz said on a conference call after the firm released results Tuesday of the first quarter.
The cryptocurrency market has remained stagnant after the historic bull run of the last two quarters, led by the launch of US spot Bitcoin exchange-traded funds and the halving, which is considered a positive catalyst as the Bitcoin code update reduces the offer of new tokens. The original cryptocurrency saw a downtrend after optimism over interest rate cuts by the Federal Reserve faded due to persistently strong economic data.
“We had a lot of tailwinds in Q4 and Q1,” Novogratz said. “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 about 2.7% to $61,389 on Tuesday. The digital currency has fallen about 16% since reaching a record $73,797 on March 14.
The New York-based company’s results jumped amid a strong rally in digital assets earlier this year, with first-quarter net profit more than tripling to $421.7 million. Galaxy’s CEO said that the adoption of cryptocurrencies in mainstream finance is in full swing and that there is renewed interest in the sector, evident from an increase in activities such as lending.
“People are willing to lend us cryptocurrencies for a long period of time without collateral, which didn’t happen six months ago and is happening now,” Novogratz said. “The counterparties are growing. Engagement in the space is simply at a different level than before.
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Shares of Galaxy Digital rose about 1% to $9.28 as of 10:15 a.m. in New York. The stock is up about 23% this year.
–With assistance from Muyao Shen.
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