Michael Novogratz Turns Short-Term Bearish on Bitcoin, Ethereum, Solana

Galaxy Digital CEO Michael Novogratz has made bearish projections for some Bitcoin (BTC), Ethereum (ETH), and Solana. In a May 14 conference call, Novogratz noted that the price of Bitcoin will most likely remain stuck in a narrow range this quarter while traditional investors’ adoption grows. 

This comes after Bitcoin’s price saw corrections going below $61,000 last week before attempting a rebound. The short-term fluctuations in the asset’s price have led to increased liquidations sparking bullish sentiment in the market leader, altcoins, and memecoins. 

Bitcoin To Hover at $55k to $75k: Novogratz

According to the Galaxy Digital Founder, the consolidating phase after the approval of spot Bitcoin ETFs might not see a sharp rise above the all-time high this quarter, Bloomberg reported.  

“We are in the consolidation phase in crypto. Bitcoin, Ethereum, and everything else, Solana will consolidate, what does that mean? It means probably somewhere between $55,000 and $75,000 until the next set of circumstances, the next set of market events bring us higher.” 

The analysis of Novogratz follows the bullish market drive in Q1 2024 after the approval of spot Bitcoin ETFs on Jan 11 and the BTC halving momentum. The price of the asset hit an all-time high above $72,000 before recent corrections. Macroeconomic factors have led to the status quo alongside industry conditions. The drop in on-chain activity and trading volumes in top assets have also led to reduced decentralized finance (DeFi) numbers. 

The Next Set of Circumstances

Like Novogratz, several bullish traders look onto the next set of positive market circumstances to spur growth in digital assets. Top of the list of a cut in interest rates by the Federal Reserve. This will see inflows of funds to risky assets and a general improved outlook. 

“ I think that is probably where we are certainly for this quarter, maybe next quarter until either A, the Fed starts cutting rates because the economy finally slows or B, we get through the election and I think the election will bring clarity one way or the other to the crypto regulatory landscape.” 

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