This Billionaire Predicted Bitcoin to Consolidate in Q2 2024

Michael Novogratz, the esteemed founder of Galaxy Digital Holdings, recently declared that Bitcoin might consolidate within a specific price range in the near future.

During a conference call following his company’s first-quarter financial disclosure, he provided insights into the cryptocurrency’s trajectory.

What can Cause a Bitcoin Breakout From the Consolidation?

Novogratz highlighted the integration of cryptocurrency into traditional finance as a pivotal factor in maintaining Bitcoin’s price within this range.

“We are in the consolidation phase in crypto. 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,” Novogratz said on a conference call

This anticipated stabilization comes after a remarkable bull run driven by significant market catalysts such as the launch of US spot Bitcoin exchange-traded funds and the halving event. The latter is a code update that reduces the issuance of new Bitcoin, historically serving as a bullish catalyst.

Following these events, the market has seen a period of stagnation. This is largely due to diminished optimism about potential rate cuts by the Federal Reserve, influenced by strong economic indicators. Since late February, Bitcoin’s price has fluctuated between $56,500 and $73,700.

“We had a lot of tailwinds in Q4 and Q1. 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,” Novogratz said.

Read more: Bitcoin Halving History: Everything You Need To Know

Furthermore, the political environment could influence the market. Analyst Geoffrey Kendrick from Standard Chartered remarked that a potential re-election of Donald Trump could lead to less stringent crypto regulations compared to those under President Joe Biden. Such a policy shift might encourage global treasury holders to explore alternative financial assets like Bitcoin, potentially propelling its value upwards.

In March, Trump himself hinted at a softer regulatory approach toward cryptocurrencies, diverging from his prior preference for traditional currency. Despite never purchasing Bitcoin himself, Trump recognized its growing role in commerce.

“There has been a lot of use of Bitcoin and cryptocurrencies, and I’m not sure I want to take them away at this point,” he commented.

Meanwhile, Galaxy Digital reported a robust first quarter, with net income soaring to $421.7 million, marking a significant increase from the previous period. The company’s mining operations also grew substantially, generating a record $31.5 million in revenue.

Read more: Best Crypto Mining Stocks to Buy or Watch Now

This reflects a 69% rise from the previous quarter, fueled by an expansion in mining capacity. Galaxy’s trading revenue surged to $66 million, up 78%, driven largely by gains from derivatives and positive asset price movements.