Bitcoin
This billionaire predicted that Bitcoin would consolidate in the second quarter of 2024
Michael Novogratz, the esteemed founder of Galaxy Digital Holdings, recently stated that Bitcoin could consolidate within a specific price range in the near future.
During a conference call following his company’s first-quarter financial release, he provided insights into the cryptocurrency’s trajectory.
What could cause a Bitcoin breakout with consolidation?
Novogratz highlighted the integration of cryptocurrency into traditional finance as a key factor in keeping Bitcoin’s price within this range.
“We are in the consolidation phase in crypto. Bitcoin, Ethereum and everything else will be consolidated, what does that mean? That means probably somewhere between $55,000 and $75,000 until the next set of circumstances, the next set of market events will take us higher,” Novogratz he said on a conference call
This anticipated stabilization comes after a notable bull run driven by significant market catalysts such as the launch of spot Bitcoin exchange-traded funds in the US and the halving event. The latter is a code update that reduces the issuance of new Bitcoins, historically serving as a bullish catalyst.
After these events, the market went through a period of stagnation. This is largely due decreased optimism about possible rate cuts by the Federal Reserve, influenced by strong economic indicators. Since the end of February, Bitcoin Price fluctuated between $56,500 and $73,700.
“We had a lot of tailwinds in the fourth and first quarter. I think that’s probably where we’ll be this quarter, maybe next quarter until A, the Fed starts cutting rates because the economy finally slows or B, we get through the election and I think the election will bring clarity one way or another. beyond the crypto regulatory landscape,” said Novogratz.
See more information: Bitcoin Halving History: Everything You Need to Know
Bitcoin price performance. Source: Trading View
Furthermore, the political environment can influence the market. Standard Chartered analyst Geoffrey Kendrick noted that a potential Donald Trump’s re-election could lead to less stringent crypto regulations compared to those under President Joe Biden. Such a policy change could encourage global treasury bond holders to explore alternative financial assets like Bitcoin, potentially boosting its value upward.
In March, Trump himself suggested a softer regulatory approach towards cryptocurrencies, diverging from his previous preference for traditional currency. Despite never purchasing Bitcoin, Trump acknowledged its growing role in commerce.
“There has been a lot of use of Bitcoin and cryptocurrencies, and I’m not sure I want to retire them at this point,” he commented.
Meanwhile, the Digital Galaxy reported a robust first quarter, with net profit rising to US$421.7 million, marking a significant increase from the previous period. The company’s mining operations also grew substantially, generating record revenue of US$31.5 million.
See more information: Best Crypto Mining Stocks to Buy or Watch Now
This reflects a 69% increase from the previous quarter, driven by an expansion in mining capacity. Galaxy’s trading revenue increased to $66 million, a 78% increase, driven largely by derivative gains and positive asset price movements.
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