Bitcoin (BTC) Could Consolidate For Weeks, Notes Mike Novogratz
In an interview with Bloomberg, Galaxy Digital CEO Mike Novogratz said that both () and (ETH) could consolidate around their current positions.
First, Mike Novogratz predicts that Bitcoin could take hold:
“Somewhere between $ 40,000 and $ 55,000 for the next chapter.”
He noted that it would need to consolidate, before generating enough momentum to break above the $ 55,000 price level.
This could take four to six weeks. He added that Galaxy was buying at about $ 42,000, its lowest point since February.
When asked about Ethereum’s next move, Novogratz first commented on the jump from $ 800 to $ 4,000 in five months:
“He has had a great streak […] And if it consolidates here for between 3,000 and 4,000, it’s probably pretty healthy. “
Novogratz added that Ethereum would receive an update this summer, which will likely facilitate further use.
The Galaxy CEO also emphasized the potential of the blockchain by acknowledging its “triple whammy” of hosting stablecoins, decentralized finance protocols (DeFi) and non-fungible tokens (NFTs).
Environmental impact of companies
The conversation also veered towards Tesla’s (NASDAQ 🙂 decision to suspend acceptance of Bitcoin as a means of payment, due to environmental concerns.
Novogratz recognized Tesla CEO Elon Musk as a major figure in American business and an icon in the world of cryptocurrencies.
He added that Musk’s concern about Bitcoin’s energy use applies to sustainability awareness across industries:
“And then I think you will see a response from this industry as you should see a response from all industries.”
He said companies will likely consider how to offset their impact, ahead of a paradigm shift toward mostly sustainable resources, which Novogratz believes is “seven or eight years away.”
This Novogratz consideration echoes a report published by Galaxy Digital. The report notes that Bitcoin consumes less energy than it, banks and other financial systems.
Meanwhile, Galaxy Digital reported another consecutive record quarter, doubling its net income to $ 860 million from $ 336 million in the previous quarter.
Novogratz also highlighted the company’s recent acquisition of BitGo.
During the interview, he related that his company is not specific to Bitcoin, but rather “invests in the entire ecosystem.”
He also highlighted the company’s mining capabilities, its venture capital business, as well as investment in DeFi and NFT.
During the earnings call, he recognized Galaxy as “a growing business, in a growing industry.”
At more than $ 2 trillion, he emphasized that the total market capitalization of cryptocurrencies was half a percent of global wealth. He anticipates that this figure will increase from 2% to 4% in the coming years, “and that is where the Galaxy bet is.”
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