Galaxy Digital founder and CEO Michael Novogratz stated that Bitcoin may continue to trade within a relatively narrow range this quarter, ranging from $55,000 to $75,000, until it catches the next tailwind and rebounds. The earliest timeframe for this rebound could be the end of this quarter or Q3.
Digital asset financial services company Galaxy Digital’s founder and CEO, Michael Novogratz, pointed out during the first quarter earnings conference call yesterday (14th) that Bitcoin could be confined to a relatively narrow range of $55,000 to $75,000 at least this quarter.
According to reports from Bloomberg and Cointelegraph, Novogratz stated during the meeting that we are currently in a consolidation phase in the cryptocurrency field, and Bitcoin may not experience significant gains or reach new all-time highs this quarter.
The next tailwind to watch for is interest rate cuts and the US presidential election.
The listing of the first quarter US Bitcoin spot ETF and the fourth Bitcoin halving event have allowed Bitcoin to reach a historical high of $73,777 in mid-March, entering a historic bull market cycle.
However, with the recent stubborn inflation data in the past two months weakening market expectations for a rate cut by the Federal Reserve, BTC has started to show a downward trend. It dropped to around $60,000 at the beginning of May and is currently at $61,854, a decrease of about 16% from the historical high set on March 14.
Novogratz stated that the cryptocurrency market did indeed have many tailwinds in Q4 of last year and Q1 of this year. He predicts that the catalyst events that will propel the cryptocurrency market to rebound again this year could be “Federal Reserve interest rate cuts and the US presidential election.”
Furthermore, Novogratz also stated that he is not too concerned about the trend of reduced inflows into Bitcoin spot ETFs and the recent decline in Bitcoin. He emphasized that the adoption of cryptocurrencies by traditional financial institutions is fully underway, stating, “We continue to see adoption rates increase… Big companies are just starting to incorporate cryptocurrencies into their systems.”
He also noticed a significant resurgence of interest in the cryptocurrency industry, which can be seen from the increase in loan activity, stating, “People are willing to lend us cryptocurrencies without collateral for a long period of time, which didn’t happen six months ago but is happening now. The number of counterparties is growing. The level of participation in the entire space is different from before.”
Galaxy Digital, headquartered in New York, has seen a significant increase in its financial performance amid the substantial rise in digital assets this year. Its Q1 net profit reached $421.7 million, a 40% growth from the previous quarter. The company’s stock price has also risen nearly 20% year-to-date.
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