Galaxy Digital Founder Anticipates Bitcoin to Trade in a Limited Range for the Time Being
Michael Novogratz, the visionary behind Galaxy Digital Holdings, a renowned financial services firm specializing in digital assets, predicts that Bitcoin will maintain 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 cryptocurrency market is currently going through a consolidation phase. He stated that Bitcoin, Ethereum, and other cryptocurrencies like Solana are likely to consolidate as traditional finance continues to adopt cryptocurrencies.
Michael Novogratz Anticipates Bitcoin to Stay Within the $55,000 to $75,000 Range
In particular, he expects Bitcoin to remain within the range of approximately $55,000 to $75,000 until specific market events or circumstances drive the prices higher.
The cryptocurrency market has experienced a period of stagnation following the historic bull run witnessed in the last two quarters. This surge was primarily fueled by the introduction 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 has waned due to consistently strong economic indicators, resulting in a downward trend in Bitcoin’s price.
Novogratz mentioned the favorable conditions observed in the fourth quarter of the previous year and the first quarter of this year. “I believe that is where we currently stand, at least for this quarter, and perhaps the next, until either A) the Fed begins cutting rates due to a slowdown in the economy, or B) we pass the election and gain clarity on the regulatory landscape for cryptocurrencies.”
On Tuesday, Bitcoin experienced a 2.7% decline, with its price dropping to $61,389. Since reaching its all-time high of $73,797 on March 14, the cryptocurrency has seen a 16% decrease.
Impressive Q1 Results Reported by Galaxy Digital
Galaxy Digital, headquartered in New York, reported impressive results for the first quarter, with net income more than tripling to $421.7 million due to the significant rally in digital assets earlier this year.
Novogratz highlighted the growing adoption of cryptocurrencies in traditional finance, noting increased interest and activities such as lending. He mentioned that lenders are now willing to offer 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 unprecedented levels compared to previous times.
Following Novogratz’s comments, shares of Galaxy Digital rose approximately 1% to $9.28 as of 10:15 a.m. in New York. The stock has gained around 23% so far this year, reflecting the positive sentiment surrounding the company.
Meanwhile, Rekt Capital, a technical analyst, believes that Bitcoin has exited 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.
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