Galaxy Digital CEO Novogratz expects BTC to consolidate between $58,000 and $75,000. National debt issues will make it easier to sell BTC over the next four years.
Many cryptocurrency figures and analysts have shared their own price projections for the near term as Bitcoins [BTC] halving approaches.
Recently, Rich Dad Poor Dad author Robert Kiyosaki predicted that BTC could reach $100,000 in September. Similarly, for BitGo CEO Mike Belshe, a conservative BTC price target of $80,000 was likely by May.
However, Galaxy Digital CEO and founder Mike Novogratz doesn’t completely agree. Instead, according to the executive, there will be short-term price consolidation between $58,000 and $75,000, before the next bullish leg.
During an interview, Novogratz stated that “Prices will consolidate for a while between $75,000 and perhaps $62,000 or even $58,000.”
BTC “Easier to Sell” Due to National Debt
Mike Novogratz is the founder and CEO of Galaxy Digital, a company dedicated to investment management and diversified financial services in digital assets, cryptocurrencies and Blockchain technology.
In some previous earnings call with Galaxy Digital investors, Novogratz had cited huge “boom wealth” and national debt issues as factors that could induce additional demand for BTC.
He reiterated the same in the Bloomberg interview, highlighting how the national debt problems facilitate the sale of BTC:
“Every 100 days, the government adds $1 trillion of debt. That story is so powerful that it makes it easy for registered investment salespeople/advisors to tell their clients to put a couple percent of their net worth in Bitcoin.”
He further stated that “you’re seeing that happen. This is a process that will last four years, not four months.” Put another way, Novogratz expects a full build-up period over the next four years.
More recently, BTC had seemingly recovered after the first Asian trading session on March 28. It was valued at just over $70,200.
The rally followed a sudden drop reaction from $71.7k to $68.35k after the US SEC got the green light to proceed with the Coinbase lawsuit.
As the weekly chart zoomed out, BTC showed signs of consolidation above $58,000. Still, it is too early to confirm whether Novogratz’s limited projection will be validated.
What Bitcoin’s Next Bull Run Will Look Like, According to Novogratz
Novogratz acknowledges that in the cryptocurrency space, there has been a significant change in 2021 as the Federal Reserve adjusted its policies and began raising rates aggressively. It states that a decline was observed, compounded by widespread fraud and misconduct within the industry, particularly exemplified by entities such as Celsius, “causing embarrassment and pessimism for the future of cryptocurrencies.”
The cryptocurrency market suffered a loss of confidence due to these factors, resulting in a classic market capitulation where sentiment became overwhelmingly negative.
Despite the prevailing pessimism, times of extreme decline often present lucrative buying opportunities. In retrospect, the bitcoin price drop to $7,000 in 2018 turned out to be an excellent entry point for astute investors.
Although regulatory uncertainties remain, bipartisan consensus on legislative initiatives suggests the imminent establishment of a regulatory framework. Coupled with the recent introduction of cryptocurrency ETFs and upcoming rate cuts by the Federal Reserve, this sets the stage for greater institutional adoption, which “is very exciting.”
Looking ahead, Novogratz foresees a gradual but steady increase in bitcoin allocations in investment portfolios, as RIAs recognize its potential for diversification and wealth preservation. Such an influx of capital from the traditional financial sector, in Novogratz’s view, represents the next phase of bitcoin’s evolution and promises to be “a major catalyst for its continued growth.”
By Audy Castaneda
