According to Mike Novogratz, the founder and CEO of Galaxy Digital, the price of Bitcoin will continue to fluctuate between $55,000 and $75,000 in the coming month. However, he predicts that it may bounce higher towards the end of the second quarter. Novogratz made these comments during Galaxy Digital’s first quarter earnings call, where the company reported record quarterly revenue. He described the current state of the crypto markets as a “consolidation phase” and suggested that prices will increase in the near future. Novogratz mentioned that Bitcoin, Ethereum, and other cryptocurrencies like Solana will consolidate within this price range until new market events push them higher.
Spot Bitcoin exchange-traded funds (ETFs) initially experienced high demand from institutional investors, with over $13.9 billion in volume generated in the first week. However, inflows have decreased significantly in recent months due to a decline in Bitcoin’s price. Data from TradingView shows that Bitcoin is currently down 16.5% from its all-time high of $73,700, which was reached on March 13. Despite this, Novogratz remains unconcerned about the declining inflows for spot Bitcoin ETFs and the downward slide in Bitcoin’s price. He believes that traditional financial institutions are gradually adopting cryptocurrencies, which will contribute to their long-term growth.
Galaxy Digital and Invesco, a pattern firm, launched their own spot Bitcoin ETF called BTCO. However, it has only attracted $268 million in inflows, making it the second-lowest total inflow among all funds (excluding the Grayscale Bitcoin Trust). Novogratz stated that adoption of cryptocurrencies is still increasing, with major players starting to integrate them into their systems.
Novogratz also discussed the factors that could influence future price movements in the crypto market. He suggested that crypto asset prices may rise when the United States Federal Reserve starts cutting rates due to a slowing economy. Alternatively, a favorable outcome from the upcoming U.S. presidential election could also have a positive impact on the market. Novogratz believes that the election will bring clarity to the regulatory landscape for cryptocurrencies.
In the first quarter, Galaxy Digital achieved a net income of $421.7 million, a 40% increase from the previous quarter. This growth was driven by record revenue from mining operations and management fees.
Overall, Novogratz remains optimistic about the future of cryptocurrencies, expecting them to rebound in the coming months due to various catalysts and ongoing adoption by traditional financial institutions.