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Galaxy’s Novogratz sees Bitcoin stuck in $55,000-$75,000 range for now
(Bloomberg) — Michael Novogratz, founder of digital asset financial services company Galaxy Digital Holdings Ltd., said Bitcoin will likely remain stuck in a relatively tight trading range for at least the current quarter, while the crypto adoption in traditional finance continues.
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“We are in the consolidation phase of crypto. Bitcoin, Ethereum and everything else, Solana will consolidate, what does that mean? That probably means $55,000 to $75,000 until the next set of circumstances, the next set of market events takes us higher,” Novogratz said on a conference call after releasing first-quarter results. Tuesday.
The crypto market has been stagnant since the historic rise of the last two quarters, driven by the launch of US Bitcoin spot exchange-traded funds as well as the halving, which is seen as a positive catalyst as the staking Updating the Bitcoin code reduces the supply of new tokens. The original cryptocurrency has been trending downward after optimism around interest rate cuts by the Federal Reserve waned due to still-strong economic numbers.
“We had a lot of tailwind in the fourth and first quarter,” Novogratz said. “I think that’s probably where we are for this quarter, maybe next quarter until either A, the Fed starts cutting rates because the economy is finally slowing down, or B, we let’s go through the elections and I think the elections will bring clarity one way or another to the crypto regulatory landscape.
Bitcoin fell about 2.7% to $61,389 on Tuesday. The digital currency is down about 16% since hitting a record high of $73,797 on March 14.
The New York-based company’s results jumped amid the surge in digital assets earlier this year, with first-quarter net profit more than tripling to $421.7 million. The Galaxy CEO said crypto adoption in traditional finance is in full swing and there is renewed interest in the sector, as evidenced by an increase in activities such as lending.
“People are willing to lend us cryptocurrencies for a long time without collateral, that didn’t happen six months ago and it’s happening now,” Novogratz said. “The rewards are multiplying. The engagement around the space is just at a different level than it was before.
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Shares of Galaxy Digital were up about 1% at $9.28 as of 10:15 a.m. in New York. The stock is up about 23% so far this year.
–With the help of Muyao Shen.
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