Mike Novogratz, founder of Galaxy Digital Holdings, shares his insights into the cryptocurrency market, hinting that cryptocurrencies have entered a consolidation phase. This phase, often seen as a period of stabilization after market rallies, may indicate a cooling period.
Mike Novogratz, founder of Galaxy Digital Holdings, shares his insights into the cryptocurrency market, hinting that cryptocurrencies have entered a consolidation phase. This phase, often seen as a period of stabilization after market rallies, may indicate a cooling period.
Consolidation is characterized by assets moving sideways within a certain range, indicating balance between buyers and sellers. Novogratz believes this could be the current phase for cryptocurrencies like Bitcoin, Ethereum, and Solana, which have seen significant volatility in recent months. The consolidation phase could be a precursor to the next bull run, depending on several market factors.
Novogratz predicts that Bitcoin, the largest cryptocurrency by market cap, may remain stuck in the $55,000 to $75,000 range for the time being.
“We are in the consolidation phase of cryptocurrencies. Bitcoin, Ethereum and everything else, Solana will consolidate, what does that mean? It means probably between $55,000 and $75,000 until the next set of circumstances, the next set of events of the market will take us higher,” Novogratz said in a conference call, according to Bloomberg.
The cryptocurrency market has remained static since the record bull run of the previous two quarters, driven by the launch of US Bitcoin exchange-traded funds and the Bitcoin halving event.
Bitcoin, however, fell as confidence in the Federal Reserve’s interest rate cuts faded due to continued strong economic readings.
Novogratz stated that the cryptocurrency market experienced many tailwinds in the fourth and first quarters. A cooldown is likely in the current quarter; However, this could change in the next quarter if certain factors come into play, such as the Federal Reserve’s rate cut.
In the latest indication of the US economic outlook, Federal Reserve Chairman Jerome Powell He stated that the US economy is performing well and has a strong labor market. Inflation in the United States did not increase further in the first quarter.
Unsure whether inflation will continue, Powell hinted that raising interest rates might not be the next step, but they are likely to remain stable.
