Mike Novogratz, CEO and founder of Galaxy Digital, shared his insights into the current state of the cryptocurrency market. According to Bloomberg, Novogratz predicts that Bitcoin (BTC) will likely remain within a relatively narrow range. trading range for the current quarter as the adoption of cryptocurrencies in traditional finance continues to evolve.
Stagnant Crypto Market
According to the report, Novogratz described the current phase of the crypto market as a period of consolidation. He emphasized that Bitcoin, Ethereum (ETH) and other cryptocurrencies, including Solana (SOL), are expected to consolidate.
This consolidation phase suggests that the price of Bitcoin will likely trade within a range of approximately $55,000 to $75,000 until significant market events drive prices higher.
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The crypto market has gone through a period of stagnation following the historic bull run witnessed over the last two quarters. This surge was fueled by the launch of US spot Bitcoin exchange-traded funds (ETFs) and the Bitcoin halving, which reduced the supply of new BTC.
However, the Bitcoin price trend has reversed due to waning optimism surrounding interest rate cuts by the Federal Reserve (Fed), amid consistently strong economic indicators.
According to Novogratz’s analysis, if his predictions come true, Solana It could continue to consolidate within its current trading range of $120 to $150. This consolidation has been observed over the past month, indicating a period of stability for the cryptocurrency.
Similarly, Ethereum’s price closely mirrored Bitcoin’s movements and traded between the $2,870 and $3,200 levels.
Ethereum has recently failed to consolidate above the significant $4,000 mark reached in mid-March. As a result, Ethereum went through a period of price consolidation within the above range.
Bitcoin volatility persists
Novogratz acknowledged the tailwinds driving the market during Q4 2023 and Q1 2024.
The Galaxy CEO believes these tailwinds will likely persist throughout the current quarter and possibly the next unless there are significant developments such as the start of the Fed rate cuts due to an economic slowdown or until the regulatory landscape becomes clearer after the next election.
Additionally, Novogratz noted a significant shift in counterparties’ willingness to lend cryptocurrencies for extended periods without the prevalence of collateral, a trend that did not occur just six months ago. He emphasized that involvement in the crypto space has reached a new level, with growing interest from both individuals and institutions.
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On Tuesday, Bitcoin suffered a 2.7% drop, trading at US$61,400. Since reaching a record high of $73,700 on March 14, the market’s largest cryptocurrency has undergone a 16% decline. Despite this, Galaxy Digital reported remarkable results in the first quarter, with net profit more than tripling to $421.7 million.
Featured image from Shutterstock, chart from TradingView.com