Mike Novogratz, the chief executive of digital asset merchant bank Galaxy Digital, expects cryptocurrencies like Bitcoin to trade sideways for the next few weeks before potentially rallying higher towards the end of the second quarter.
In Galaxy’s recent Q1 earnings call, Novogratz stated that crypto markets are currently in a “consolidation phase.” He forecasts Bitcoin and other major coins will likely range between $55,000 and $75,000 over the coming month. However, new catalysts could emerge to drive prices up as Q2 concludes.
While inflows into recently launched spot Bitcoin ETFs have cooled after an initial frenzy, Novogratz remains confident in crypto’s long-term adoption by institutional investors and wealth managers. He cited this as an ongoing process that will continue playing out.
Looking ahead, Novogratz highlighted potential upside triggers like interest rate cuts by the Federal Reserve due to economic slowdown, or regulatory clarity stemming from the upcoming U.S. presidential election.
Notably, Galaxy itself posted strong Q1 results, with net income climbing 40% quarter-over-quarter to $421.7 million on the back of record mining and fee revenues.
As consolidation takes hold in crypto markets, investors await the catalysts that could revive bullish momentum towards the latter stages of Q2, according to the seasoned digital asset investor’s perspective.
