Mike Novogratz, the founder and CEO of Galaxy Digital, predicts that the price of Bitcoin will continue to fluctuate between $55,000 and $75,000 over the next month. However, he believes that the price will bounce back towards the end of the second quarter. Novogratz made these remarks during Galaxy Digital’s first quarter earnings call, where the company reported record revenue.
Novogratz describes the current state of the crypto markets as a “consolidation phase,” indicating that Bitcoin, Ethereum, and other cryptocurrencies, including Solana, will remain in this range until new market events occur. He expects that these events will lead to a price increase.
Spot Bitcoin exchange-traded funds (ETFs) received significant demand from institutional investors when they were first introduced, generating over $13.9 billion in volume in their first week. However, inflows have decreased in recent months due to the decline in Bitcoin’s price. According to TradingView data, Bitcoin has dropped 16.5% from its all-time high of $73,700 on March 13.
Despite the decrease in inflows for spot Bitcoin ETFs and the recent price decline, Novogratz remains optimistic. He points to a broader trend of adoption among traditional financial institutions and believes that this will continue. Galaxy Digital and Invesco launched their own spot Bitcoin ETF, which has attracted $268 million in inflows since its inception.
Novogratz also mentions several catalysts that could affect the crypto market’s price action in the coming months. He suggests that when the United States Federal Reserve starts cutting rates due to a slowdown in the economy, crypto asset prices could start to rise. Additionally, he believes that the upcoming U.S. presidential election could bring clarity to the crypto regulatory landscape, which could also impact prices.
In the first quarter, Galaxy Digital reported 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.
In other news, a Web3 gaming competition is offering a prize of $656,000 for the best crypto game pitch. However, some experts believe that Web3 gaming will not exist in five years.