Mike Novogratz, the CEO and founder of Galaxy Digital, shared his
insights on the current state of the cryptocurrency
market. According to Bloomberg, Novogratz predicts that
Bitcoin (BTC) will likely remain within a relatively narrow trading
range for the current quarter as the adoption of cryptocurrencies
in traditional finance continues to evolve. Stagnant Crypto Market
Per the report, Novogratz described the current phase in the crypto
market as a consolidation period. He emphasized that Bitcoin,
Ethereum (ETH), and other cryptocurrencies, including Solana (SOL),
are expected to consolidate. This consolidation phase
suggests that the Bitcoin price will likely trade within a range of
approximately $55,000 to $75,000 until significant market events
drive prices higher. Related Reading: On A Tear: Toncoin Outshines
Bitcoin With Price Surge And Social Buzz The crypto market has
experienced a period of stagnation following the historic bull run
witnessed in the past two quarters. This surge was fueled by the
launch of spot US Bitcoin exchange-traded funds (ETFs) and the
Bitcoin Halving, which reduced the supply of new BTC.
However, Bitcoin’s price trend reversed due to diminishing optimism
surrounding interest rate cuts by the Federal Reserve (Fed), amid
consistently strong economic indicators. According to Novogratz’s
analysis, if his predictions hold, Solana 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 has closely mirrored Bitcoin’s movements and has traded
between the $2,870 and $3,200 levels. Ethereum recently
failed to consolidate above the significant $4,000 mark reached in
mid-March. As a result, Ethereum has experienced a period of price
consolidation within the range above. Bitcoin Volatility Persists
Novogratz acknowledged the tailwinds that propelled the market
during the fourth quarter of 2023 and the first quarter of
2024. Galaxy’s CEO believes that these tailwinds will likely
persist throughout the current quarter and possibly the next unless
there are significant developments, such as the Fed initiating rate
cuts due to an economic slowdown or until the regulatory landscape
becomes clearer after the upcoming election. Moreover, Novogratz
noted a significant shift in counterparties’ willingness to lend
crypto for extended periods without collateral, a trend that was
not prevalent just six months ago. He emphasized that engagement in
the crypto space has reached a new level, with growing interest
from individuals and institutions alike. Related Reading: CPI
Preview: Bitcoin Price Poised To Surge If Projections Hold True On
Tuesday, Bitcoin experienced a 2.7% decline, trading at $61,400.
Since achieving a record high of $73,700 on March 14, the largest
cryptocurrency in the market has undergone a 16% decline. Despite
this, Galaxy Digital reported notable first-quarter results, with
net income more than tripling to $421.7 million. Featured
image from Shutterstock, chart from TradingView.com
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