The continuous rise of Bitcoin may pause for a moment, according to Mike Novogratz, the founder and CEO of Galaxy Digital. He predicts that Bitcoin could experience a pullback to around $55,000 before resuming its upward trend and reaching record levels by the end of this year.
Bitcoin surged to nearly $64,000 earlier this week, approaching its all-time high of $69,000 set in 2021. However, it has since pulled back and is currently hovering around $61,000. In an interview with Bloomberg on Thursday, Mike Novogratz stated that he believes Bitcoin may experience some pullback before reaching new highs.
He described the current surge in Bitcoin prices as a “price discovery” process that occurred after the approval of a Bitcoin spot ETF by the US Securities and Exchange Commission (SEC) in January. Since then, the price of Bitcoin has risen by 40%, attracting new buyers and sellers.
According to Novogratz, institutional participants have lower leverage levels in the current market cycle compared to the recent bull market in 2021. However, retail traders have excessively high leverage levels, as indicated by data from offshore cryptocurrency trading platforms.
In addition, Novogratz expects that an Ethereum spot ETF will be approved by the SEC sometime this year. Galaxy Digital has collaborated with Invesco to file an application for an Ethereum spot ETF. Apart from Galaxy Digital/Invesco, other financial institutions such as BlackRock, Hashdex, ARk 21Shares, VanEck, and Fidelity have also submitted applications for seven Ethereum spot ETFs.
Over the past few weeks, the SEC has been postponing the decision deadlines for Ethereum spot ETF applications from Fidelity, BlackRock, Grayscale, Invesco/Galaxy, and others. Analyst James Seyffart from Bloomberg previously noted that this was expected. The only important date for Ethereum spot ETFs at the moment is May 23rd, as it is the final approval deadline for VanEck’s application.
When asked about the timeline for Galaxy Digital’s listing plans, Novogratz responded that the United States has had an “unfriendly regime” for the past four years, and he does not expect it to change before the next election.
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