Mike Novogratz, the founder and CEO of Galaxy Digital, predicts that the price of Bitcoin will continue to fluctuate between $55,000 and $75,000 in the coming month. He believes that the market is currently in a consolidation phase and expects prices to rise towards the end of the current quarter.
Novogratz mentioned that Bitcoin, Ethereum, and other cryptocurrencies like Solana will consolidate within this price range until the occurrence of new market events that push the prices higher.
Although spot Bitcoin exchange-traded funds (ETFs) initially gained significant attention from institutional investors, with over $13.9 billion in volume during their first week, inflows have slowed down in recent months due to the decline in Bitcoin’s price. Bitcoin is currently down 16.5% from its all-time high of $73,700, which was reached on March 13.
Despite the decrease in inflows for spot Bitcoin ETFs and the recent downward slide in Bitcoin’s price, Novogratz remains optimistic about the broader adoption of cryptocurrencies by traditional financial institutions. Galaxy Digital, in partnership with Invesco, launched its own spot Bitcoin ETF, which has attracted $268 million in inflows.
Novogratz believes that the factors that drove the price of cryptocurrencies at the beginning of 2024 will continue to have a positive impact in the coming months. He suggests that crypto asset prices may rise when the US Federal Reserve starts cutting rates due to a slowdown in the economy or if there is a favorable outcome from the upcoming US presidential election.
Galaxy Digital reported a net income of $421.7 million for the first quarter, a 40% increase from the previous quarter. The company’s income was boosted by record revenue from mining operations and management fees.
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