Bitcoin’s price could remain stuck between $55,000 and $75,000 for the next few months, according to Mike Novogratz, CEO of crypto investment firm Galaxy Digital.
Novogratz said on Galaxy’s Q1 earnings call that he sees Bitcoin consolidating in that range until either the upcoming US presidential election provides clarity on crypto regulations, or the Federal Reserve starts cutting interest rates due to an economic slowdown.
“We are in the consolidation phase in crypto,” Novogratz stated. “Bitcoin, Ethereum and everything else 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.”
Bitcoin has been trading in that $55K to $75K range since late February after previously spiking to a new all-time high above $73,000 in March following the launch of spot Bitcoin ETFs and the latest bitcoin halving event.
While some expected the milestone spot Bitcoin ETF launches to keep driving huge institutional inflows, that hasn’t really materialized yet according to Novogratz. However, he said the slow process of wealth managers offering crypto products to clients is still steadily driving broader adoption in traditional finance.
Looking ahead, Novogratz believes the US presidential election could be pivotal for crypto’s regulatory future depending on whether the Democrats maintain an anti-crypto stance or not. The Biden administration recently signaled it would veto overturning a rule that makes crypto firms record customer holdings as liabilities.
“It just read to the crypto community as the Democrats saying no to crypto,” Novogratz remarked, contrasting with comments from Donald Trump implying he’d be more crypto-friendly if re-elected.
Separately, a rate-cutting cycle from the Fed in response to economic weakness could also boost crypto prices according to the Galaxy CEO.