Bitcoin Expected to Bounce Back in Q2, Despite Decreased ETF Inflows: Galaxy Digital CEO
Summary:
Galaxy Digital CEO Mike Novogratz anticipates Bitcoin to oscillate between $55,000 and $75,000, predicting a rise in prices by the end of Q2 2023. He notes the ongoing "consolidation phase" in crypto markets might prompt this rise. Novogratz remains unconcerned by the decrease in spot Bitcoin ETFs inflows and recent Bitcoin's price fall, highlighting a broader trend of crypto adoption among traditional financial institutions. He also believes factors impacting the crypto prices at the start of the year will persist in influencing the market for the next few months.
Anticipating a price oscillation between $55,000 and $75,000 for Bitcoin (BTC) in the upcoming month, Galaxy Digital's CEO and Founder Mike Novogratz has projected a rise near the conclusion of Q2. In his discourse during Galaxy Digital's Q1 earnings discussion that witnessed all-time high quarterly revenue, he pointed out that the crypto markets are going through a period of "consolidation". He projected that prices will demonstrate an upward trend by the end of this quarter. “Bitcoin, Ethereum, and even the likes of Solana will consolidate, signifying the price range will likely be between 55 and 75 thousand until the market observes another active event to drive them higher,” he added. Although Spot Bitcoin ETFs were initially launched with substantial interest from institutional investors, generating over $13.9 billion in volume in just their first week, the inflows have significantly diminished over recent months that also saw a corresponding decline in the price of the underlying asset. As per the data from TradingView, Bitcoin has slid 16.5% from its highest record of $73,700 that it attained on March 13. However, Bitcoin is still up 45.7% since the beginning of the year. Undeterred by the reduced inflows for spot Bitcoin ETFs and recent drop in Bitcoin's value, Novogratz remarked that the adoption of conventional financial institutions was increasing. Galaxy Digital with its partner firm Invesco launched their own Bitcoin ETF with the BTCO ticker. The fund garnered just $268 million in inflows since its inception, marking the second smallest total inflows compared to all funds barring Grayscale Bitcoin Trust. Novogratz underscored the growing acceptance with major players, saying, "This entire process of wealth managers recommending it to their clients won't happen overnight.” He opined that many of the factors that lead to price dynamics at the outset of the year are likely to extend their presence in the coming months. He also mentioned that a potential boost in the crypto asset prices could occur when the United States Federal Reserve commences reducing rates due to an economic slowdown or a possible positive outcome from the approaching U.S. presidential election. Galaxy Digital's net income for Q1 stood at $421.7 million, marking a 40% rise from the last quarter of 2023, bolstered by record revenues from mining operations and management fees.
Published At
5/15/2024 3:55:25 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.