Novogratz predicts Bitcoin to stabilize at $55k before surging to a historic peak
Galaxy Digital CEO Michael Novogratz has expressed his belief that the crypto market may experience some corrections and consolidation before reaching new highs. In a recent interview with Bloomberg, Novogratz highlighted the importance of being cautious when dealing with Bitcoin in the current market, suggesting that short-term shifts in its trajectory are possible.
Novogratz stated that he wouldn’t be surprised to see some corrections and consolidation taking place. He described the current market rally as a phase of “price discovery,” which he attributed to the introduction of spot Bitcoin exchange-traded funds (ETFs). These ETFs have attracted a significant number of new investors and traders, leading to a surge of over 40% in BTC since the beginning of the year, with the cryptocurrency surpassing the $60,000 mark on February 28.
Drawing parallels to the 2021 cycle, Novogratz pointed out that institutional players currently hold less leverage, while retail traders are heavily leveraged, largely due to offerings from offshore crypto exchanges.
Despite these concerns, Novogratz maintains a positive outlook for the crypto market. He anticipates that spot Ethereum ETFs could receive approval from the U.S. Securities and Exchange Commission later this year. Galaxy Digital, in collaboration with Invesco, is one of the entities seeking to offer an Ethereum ETF.
In related news, Bank of America and Wells Fargo have recently added spot Bitcoin ETFs to their offerings, indicating a growing acceptance and adoption of cryptocurrencies in the traditional financial sector.
