Galaxy Digital’s CEO Believes Bitcoin Will Not Drop Below $55,000, Declares It the New Baseline
Galaxy Digital‘s CEO, Michael Novogratz, expressed his confidence that bitcoin’s price is unlikely to dip below the $50,000-$55,000 range, considering it the “new floor” barring any unforeseen dramatic events. He remarked on the unique trajectory of bitcoin, labeling it as a “wild ride” and highlighted the ongoing phase of price discovery, suggesting that reaching a $100,000 price target is within the realm of possibility.
During a CNBC interview on Wednesday, Novogratz delved into the dynamics of significant bitcoin price adjustments akin to previous market trends. He pointed out the critical role of the net inflow into nine U.S. spot bitcoin exchange-traded funds (ETFs) in propelling the BTC price upward. According to Novogratz, a pivotal shift to net outflow from these ETFs would signal the first substantial price correction, a scenario closely monitored by traders.
Despite acknowledging the current market’s “frothiness” and high funding rates, Novogratz maintained his stance on the resilience of the $50,000-$55,000 support level unless a dramatic shift occurs. He underscored the significance of the nine spot bitcoin ETFs, including major names like Blackrock’s Ishares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), in shaping trading decisions within the bitcoin market.
Last week, Novogratz projected a $100,000 milestone for BTC within the year, attributing it to the “runaway momentum” in spot bitcoin ETFs and the unprecedented ease for investors to purchase bitcoin. “We’re kind of in price discovery, and with price discovery, it’s hard to see where things will go,” he stated, emphasizing the current market condition of having more buyers than sellers and considering a $100,000 target as plausible based on the trend analysis.
