Ethereum
Galaxy Digital CEO predicts next market moves
Mike Novogratz, CEO and Founder of Galaxy Digital, shared his views on the current state of the cryptocurrency market. According to Bloomberg, Novogratz predicts that Bitcoin (BTC) will likely remain in a relatively tight 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 describe the current phase of the crypto market as a period of consolidation. He pointed out that Bitcoin, Ethereum (ETH), and other cryptocurrencies including Solana (SOL) are expected to consolidate.
This consolidation phase suggests that Bitcoin price will likely trade in a range of around $55,000 to $75,000 until significant market events push prices higher.
The crypto market has seen a period of stagnation after the historic rise seen over the past two quarters. This surge was fueled by the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States and Bitcoin Halving, which reduced the supply of new BTC.
However, Bitcoin’s price trend has reversed due to waning optimism surrounding interest rate cuts by the Federal Reserve (Fed), amid continued strong economic indicators.
According to Novogratz’s analysis, if his predictions come true, 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 closely mirrored Bitcoin’s movements and traded between $2,870 and $3,200.
Ethereum has recently failed to consolidate above the important $4,000 mark reached in mid-March. As a result, Ethereum experienced a period of price consolidation in the above range.
Bitcoin volatility persists
Novogratz recognized the tailwinds that propelled the market during the fourth quarter of 2023 and the first quarter of 2024.
Galaxy CEO believes these tailwinds will likely persist through the current quarter and perhaps the next, unless there are significant developments, such as the Fed’s launch rate cuts due to an economic downturn or until the regulatory landscape becomes clearer after the next election.
Additionally, Novogratz noted a significant shift in the willingness of counterparties to lend cryptocurrencies over long periods of time without collateral, a trend that was not widespread just six months ago. He highlighted that engagement in the crypto space has reached a new level, with growing interest from individuals and institutions.
On Tuesday, Bitcoin saw a 2.7% decline, trading at $61,400. Since hitting an all-time high of $73,700 on March 14, the market’s largest cryptocurrency has undergone a sharp rise. 16% drop. Despite this, Galaxy Digital reported remarkable first-quarter results, with net profit more than tripling to $421.7 million.
Featured image from Shutterstock, chart from TradingView.com