According to Galaxy Digital Holdings CEO Michael Novogratz, the cryptocurrency market is preparing for a period of consolidation and Bitcoin is likely to remain in a range for the foreseeable future. This prediction comes after a strong first quarter for the company, driven by Bitcoin ETF approvals and the halving event.
Bitcoin prediction attracted attention
Galaxy Digital CEO Michael Novogratz made some bearish predictions for Bitcoin (BTC), Ethereum (ETH), and Solana. In a conference call on May 14, Novogratz noted that Bitcoin price will likely remain in a tight range this quarter as adoption by traditional investors increases. Novogratz expects Bitcoin to trade in the $55,000 to $75,000 range this quarter. This consolidation phase marks a period of relative stability following the significant price movements witnessed in Q4 2023 and Q1 2024. Novogratz said:
We are in the consolidation phase in crypto. Bitcoin, Ethereum, Solana and everything else will consolidate, what does this mean? This means it will likely be somewhere between $55,000 and $75,000 until the next set of conditions, the next market events will push us higher.
This comes after Bitcoin price saw corrections below $61,000 last week before attempting a recovery. Short-term fluctuations in the price of the asset led to increased liquidations, triggering a bullish trend in the market leader, altcoins and memecoins. Several factors contribute to the expected consolidation. First, the initial enthusiasm surrounding the launch of spot Bitcoin ETFs may be waning. Secondly, decreasing optimism about possible interest rate cuts by the Fed due to positive economic indicators may weaken investor confidence.
What are the bullish catalysts?
While we may see Bitcoin trading go wrong in the near future, Novogratz identifies potential triggers for a breakout. Novogratz’s analysis follows the bullish market movement in the first quarter of 2024 following the approval of spot Bitcoin ETFs on January 11 and BTC halving momentum. The price of the asset rose above $72,000, an all-time high before the recent correction. Macroeconomic factors as well as industry conditions have led to the status quo. The decline in on-chain activity and transaction volumes across the largest assets has also led to a decline in decentralized finance (DeFi) figures.
Like Novogratz, many bullish investors are looking to the next positive market conditions to spur growth in crypto assets. It is at the top of the Central Bank’s interest rate reduction list. This will ensure the inflow of funds into risky assets and improve the overall outlook. The political arena may also play a role in Bitcoin’s course. Analysts think the potential re-election of Donald Trump could lead to a more relaxed regulatory environment compared to the current administration.
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