The Bitcoin price will continue to range between $55,000 and $75,000 over the next month, potentially bouncing higher toward the end of the second quarter, according to Mike Novogratz, the founder and CEO of Galaxy Digital.
Speaking on Galaxy Digital’s first quarter earnings call, during which the firm reported record quarterly revenue, Novogratz said crypto markets are currently in a “consolidation phase” and predicted that prices will bounce higher toward the end of the current quarter.
“Bitcoin, Ethereum, and everything else, Solana will consolidate. What does that mean? It means probably somewhere between 55 and 75 until the next set of circumstances, the next set of market events brings us higher,” he said.
Spot Bitcoin (BTC) exchange-traded funds (ETFs) initially debuted with ravenous demand from institutional investors — generating more than $13.9 billion in volume in their first week — but inflows have waned significantly in recent months amid a tumble in the price of Bitcoin.
According to TradingView data, Bitcoin is down 16.5% from its new all-time high of $73,700, which it notched on March 13.
Novogratz said he wasn’t too worried by the dwindling inflows for spot Bitcoin ETFs, nor did he seem concerned by Bitcoin’s recent downward slide, noting a broader trend of adoption among traditional financial institutions.
Galaxy Digital and pattern firm Invesco issued their own spot Bitcoin ETF, which sports the ticker BTCO. Since its inception, the fund has attracted just $268 million in inflows — the second-lowest total inflow of all funds, excluding the Grayscale Bitcoin Trust.
“We continue to see adoption growing [...] big players are just now starting to put it through their system,” he said.
“That whole process of wealth managers selling it to their clients isn’t an overnight process.”
Related: Novogratz’s Galaxy Digital raising $100M to fund crypto startups: Report
Notably, Novogratz said many of the tailwinds that drove price action at the start of 2024 will continue to stick around for the next few months and looked to several catalysts for crypto market price action moving forward.
He said crypto asset prices could begin to pick up when the United States Federal Reserve eventually begins cutting rates “because the economy finally slows,” or alternatively, we see a favorable outcome from the upcoming U.S. presidential election.
“We get through the election, and I think the election will bring clarity, one way or the other, to the crypto regulatory landscape,” Novogratz said.
Galaxy Digital posted a net income of $421.7 million for the first quarter, climbing 40% from the last quarter of 2023. Income was buoyed by record revenue from mining operations and management fees.
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