Bitcoin will settle at $55k before setting new all-time high, Novogratz says

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Galaxy Digital CEO Michael Novogratz says he wouldn’t be shocked to see some corrections and consolidation within the crypto market earlier than taking off to the brand new excessive.

In a latest interview with Bloomberg, Galaxy Digital CEO Michael Novogratz highlighted the necessity for vigilance when coping with Bitcoin (BTC) at current, indicating a chance of short-term shifts in its trajectory.

Expressing his considerations on the matter, Novogratz mentioned he “wouldn’t be shocked to see some corrections and a few consolidation.”

“If it [Bitcoin] corrects, it’d right to the mid-$50,000s, earlier than taking off to the brand new excessive.”

Michael Novogratz

Novogratz characterised the continuing market rally as a part of “worth discovery,” attributing it to the introduction of spot Bitcoin exchange-traded funds (ETFs), which have attracted a wave of recent buyers and merchants. On the time of writing, BTC has surged over 40% because the starting of the yr, breaching the $60,000 mark on Feb. 28.

Drawing comparisons to the 2021 cycle, Novogratz famous that whereas institutional gamers now maintain much less leverage, retail merchants are closely leveraged, largely on account of choices from offshore crypto exchanges.

“I believe the market is simply too leveraged proper now. There will probably be a washout. Folks can’t maintain this a lot leverage.”

Michael Novogratz

Regardless of these considerations, Novogratz maintains a constructive outlook for the crypto market, anticipating that spot Ethereum ETFs might obtain approval from the U.S. Securities and Alternate Fee later this yr. Galaxy Digital, in collaboration with Invesco, is among the many entities searching for to supply an Ethereum ETF.

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