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This billionaire predicted Bitcoin consolidation in the second quarter of 2024
Michael Novogratz, the esteemed founder of Galaxy Digital Holdings, recently stated that Bitcoin could consolidate within a specific price range in the near future.
During a conference call following his company’s first-quarter financial disclosure, he provided insights into the cryptocurrency’s trajectory.
What can cause Bitcoin to break out of consolidation?
Novogratz highlighted the integration of cryptocurrency into mainstream finance as a key factor in keeping the price of Bitcoin within this range.
“We are in the consolidation phase in the cryptocurrency industry. Bitcoin, Ethereum and everything else will 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,” Novogratz She said during a conference call
This expected stabilization comes after a notable bull run led by major market catalysts such as the launch of US spot Bitcoin exchange-traded funds and the halving event. The latter is a code update that reduces the issuance of new Bitcoin, historically serving as a bullish catalyst.
Following these events, the market experienced a period of stagnation. This is largely due to decreased optimism about potential rate cuts by the Federal Reserve, influenced by strong economic indicators. Since the end of February, The price of Bitcoin it fluctuated between $56,500 and $73,700.
“We had a lot of tailwinds in Q4 and Q1. I think this is probably where we are for this quarter, maybe next quarter until A, the Fed starts cutting rates because the economy finally slows down, or B, we get through the election and I think the election will bring clarity one way or another. as well as the regulatory landscape of cryptocurrencies,” Novogratz said.
To know more: Bitcoin Halving History: Everything You Need to Know
Bitcoin price trend. Source: TradingView
Furthermore, the political environment could influence the market. Analyst Geoffrey Kendrick of Standard Chartered noted that there is potential Donald Trump’s re-election could lead to less stringent crypto regulations than those under the presidency Joe Biden. Such a policy shift could encourage global Treasury holders to explore alternative financial assets like Bitcoin, potentially pushing its value higher.
In March, Trump himself has hinted at a softer regulatory approach towards cryptocurrencies, diverging from his previous preference for traditional currency. Although he has never purchased Bitcoin, Trump has acknowledged its growing role in the trade.
“There has been a lot of use of Bitcoin and cryptocurrencies, and I’m not sure I want to eliminate them at this point,” he commented.
Meanwhile, Galaxy Digital reported a robust first quarter, with net income rising to $421.7 million, marking a significant increase over the previous period. The company’s mining operations also grew significantly, generating record revenue of $31.5 million.
To know more: The best cryptocurrency mining stocks to buy or watch now
This reflects a 69% increase from the previous quarter, fueled by an expansion in mining capacity. Galaxy’s trading revenues rose to $66 million, up 78%, thanks largely to derivatives gains and positive asset price movements.
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