Galaxy CEO Cautions Bitcoin May Fall To $42,000 Ahead Of Major Rally
February 22 2024 - 8:00AM
NEWSBTC
In an exclusive interview with CNBC’s ‘Squawk Box’, Mike Novogratz,
CEO of Galaxy Digital, provided an in-depth analysis of the current
state and future trajectory of Bitcoin amidst a rapidly evolving
financial landscape. The conversation spanned a variety of topics,
including the recent surge in Bitcoin prices following the approval
of spot Bitcoin ETFs and the impact of the Federal Reserve’s
monetary policy on cryptocurrency markets. Bitcoin Amid Market
Consolidation And Institutional Adoption Opening the discussion,
Novogratz touched on the remarkable rally Bitcoin has experienced,
while also suggesting a potential consolidation phase. “We’ve come
a long way fast, both in US stocks and in crypto… It wouldn’t
surprise me if there’s some consolidation,” he stated. Despite
this, he emphasized the significant milestone achieved with the
opening of the institutional and Retail Investment Advisor (RIA)
channels to Bitcoin, particularly through ETFs. “We’ve got baby
boomers who own most of the wealth in America, and they’re getting
their first easy access to Bitcoin… And I don’t think that’s going
to stop,” Novogratz elaborated, underlining the transformative
impact of ETFs on Bitcoin accessibility. Related Reading: Bitcoin
Fisher Transform Reaches Critical Level Not Seen Since 2021, What
This Means When probed about the pace at which financial advisors
could start recommending Bitcoin, Novogratz offered an optimistic
forecast: “I would tell you at least double in six months.” He
attributed this to both demand from clients and the inevitable
adaptation of large platforms. “Their customers are calling and
bitching at them and saying, we want to buy Bitcoin with you,” he
quoted, highlighting the grassroots demand driving institutional
platforms towards crypto adoption. Addressing potential short-term
price movements, Novogratz candidly acknowledged the possibility of
a downturn. “It could be some regulatory kerfuffle, it could just
be the market got a little long and you get people scared,” he
speculated, pinpointing a price range of “$45,000… $42,000” as the
potential downside. This acknowledgment of volatility underscores
his realistic view of the crypto market’s susceptibility to
external pressures and internal dynamics. BTC Price Targets Looking
ahead, Novogratz responded to Tom Lee’s prediction of Bitcoin
reaching $150,000 by year’s end with cautious optimism. While
hesitant to commit to a specific number, he concurred that Bitcoin
is likely to retest its all-time highs, emphasizing the market’s
momentum when it attracts new buyers. Related Reading: Bitcoin FOMO
Hasn’t Spiked Yet: Green Signal For Rally To Continue? “You know,
when markets get new buyers and start breaking out, it’s hard to
have a price prediction,” he remarked, suggesting that surpassing
the $69,000 mark could open the door to unprecedented price levels
like $125,000 to $150,000, contingent on broader economic
conditions such as the Federal Reserve’s interest rate policies.
Delving into Bitcoin’s correlation with the macroeconomic
environment, Novogratz presented a nuanced perspective. He
acknowledged Bitcoin’s dual identity as both a macro asset and a
nascent technology in an adoption cycle. On the topic of Bitcoin’s
correlation with broader economic indicators, Novogratz highlighted
the dual narrative that has come to define Bitcoin’s market
behavior. “It’s a macro asset…And the second, we’re early on in the
life cycle, so there’s an adoption cycle,” he pointed out. Thus, he
emphasized the unique position of Bitcoin at the intersection of a
burgeoning asset class and a macroeconomic hedge. He added,
“Right now, this is all adoption. This is new buyers coming in and
being told the big-picture story that you need to have this in your
portfolio.” Featured image created with DALL·E, chart from
tradingView.com
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