Bitcoin Expected to Trade in a Narrow Range, Says Galaxy Digital Founder
Michael Novogratz, the founder of Galaxy Digital Holdings, predicts that Bitcoin will remain within a relatively tight trading range in the current quarter. During a conference call discussing Galaxy Digital’s first-quarter results, Novogratz stated that the crypto market is currently in a consolidation phase. He believes that Bitcoin, Ethereum, and other cryptocurrencies like Solana will consolidate as traditional finance continues to adopt cryptocurrencies.
Novogratz expects Bitcoin to stay between $55,000 and $75,000 until specific market events or circumstances push the prices higher. The cryptocurrency market has experienced a period of stagnation following the historic bull run seen in the last two quarters. This surge was driven by the launch 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 diminished due to consistently strong economic indicators, leading to a downward trend in Bitcoin’s price.
Novogratz mentioned the tailwinds experienced in the fourth quarter of the previous year and the first quarter of this year. He believes that the market will likely remain in this state until either the Fed starts cutting rates or the election brings clarity to the crypto regulatory landscape.
Bitcoin saw a 2.7% decline on Tuesday, dropping to $61,389. Since reaching its all-time high of $73,797 on March 14, the cryptocurrency has experienced a 16% decrease.
Galaxy Digital reported impressive results for the first quarter, with net income more than tripling to $421.7 million due to the strong 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 offering unsecured loans of cryptocurrencies for longer durations, which was not the case just six months ago.
Following Novogratz’s remarks, shares of Galaxy Digital rose around 1% to $9.28. The stock has gained approximately 23% so far this year.
Meanwhile, technical analyst Rekt Capital believes that Bitcoin has exited the post-halving “danger zone” and entered an accumulation phase, as selling pressure weakens.