Mike Novogratz, CEO of Galaxy Digital, predicts that Bitcoin’s value will likely hover between $55,000 and $75,000 in the coming months.
He shared this insight during Galaxy’s Q1 earnings call, pointing out that this consolidation phase could persist until either clearer regulations emerge after the US presidential election or the Federal Reserve decides to cut interest rates due to economic sluggishness.
According to Novogratz, the current phase in the crypto market is one of consolidation. This means that Bitcoin, Ethereum, and other cryptocurrencies are likely to stabilize within the mentioned price range until significant market events push them higher.
Since late February, Bitcoin has indeed been fluctuating within the $55K to $75K bracket, following its peak above $73,000 in March triggered by the introduction of spot Bitcoin ETFs and the latest halving event.
Despite expectations that the introduction of milestone spot Bitcoin ETFs would attract substantial institutional investments, Novogratz notes that such inflows have not yet materialized. Nonetheless, he highlights the gradual integration of crypto products into the offerings of wealth managers as a factor contributing to broader adoption in traditional finance.
Looking ahead, Novogratz emphasizes the potential impact of the US presidential election on crypto regulations. The stance of the Democrats, particularly regarding crypto, could significantly shape the industry’s regulatory landscape. He notes recent indications from the Biden administration suggesting reluctance to change a rule that requires crypto firms to record customer holdings as liabilities, which may be perceived negatively by the crypto community.
Additionally, Novogratz speculates that a series of interest rate cuts by the Federal Reserve in response to economic challenges could further drive up crypto prices.
