In the bustling world of cryptocurrency, Galaxy Digital CEO and Founder Mike Novogratz recently gave his take on the current market status, as reported by Bloomberg. He anticipates that Bitcoin (BTC), the pioneer and largest cryptocurrency, will presently remain confined within a moderately narrow trading band during this quarter as traditional finance further embraces digital currencies.
Novogratz, a well-respected figure in the crypto-sphere, categorized the current state of the market as a consolidation phase. He supposes that the major stalwarts of the crypto market – Bitcoin, Ethereum (ETH), and emerging players like Solana (SOL) – are entering a phase of consolidation.
Interpreting this, one might expect Bitcoin to hover within a value bracket of approximately $55,000 to $75,000 until substantial market stimuli encourage an upward movement.
A few might recall the exhilarating bull run that marked the previous two fiscal quarters. This meteoric ascend was sparked by the launch of the US Bitcoin exchange-traded funds (ETFs) in the spot market, and the Bitcoin Halving, a pre-programmed mechanism that curtailed the supply of new BTC.
This soaring trend, sadly, began to reverse owing to the dwindling buoyancy around Federal Reserve’s impending interest rate cuts, which occurred in the backdrop of persistently robust economic pointers.
Novogratz also predicted a possible continuance of Solana’s consolidation, which might keep it within a trading gamut of $120 to $150; a pattern already discernible over the past month, suggesting stability.
Ethereum’s performance has conversely echoed that of Bitcoin, hovering between the $2,870 and $3,200 brackets. Regrettably, Ethereum found it challenging to maintain a position above the significant $4,000 mark achieved mid-March, resulting in its price being confined to the range above.
Galaxy Digital’s head honcho recognized the arousing forces that stirred the market during the latter part of 2023 and early 2024. He reckons these inciting elements could likely persist throughout this quarter and possibly extend into the next, barring any substantial development. For instance, the Fed instigating rate cuts due to economic slump or unforeseen regulatory adjustments post the forthcoming election.
Additionally, Novogratz pointed out a notable trend where counterparties have become more open to lending crypto for more extended periods without collateral. This practice was relatively rare just half a year ago. He stressed that engagement in the crypto space had risen to unprecedented heights, reflecting the increasing interest from individuals and institutional investors.
Last Tuesday, Bitcoin felt a slight cold wind down its alley with a 2.7% drop, setting its trade value to $61,400. It must be noted that Bitcoin had set an all-time high record of $73,700 on March 14, making this a 16% decline. However, in the midst of this, Galaxy Digital reported a strong first quarter, with their net income soaring more than threefold to a commendable $421.7 million.
Though the daily chart revealed a downward trend in Bitcoin price, market watchers are always braced for what could be the next big move.
