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Galaxy CEO Cautions Bitcoin May Fall To $42,000 Ahead Of Major Rally

In an exclusive interview with CNBC’s ‘Squawk Box’, Mike Novogratz, CEO of Galaxy Digital, provided an in-depth analysis of the current state and future trajectory of Bitcoin amidst a rapidly evolving financial landscape. The conversation spanned a variety of topics, including the recent surge in Bitcoin prices following the approval of spot Bitcoin ETFs and the impact of the Federal Reserve’s monetary policy on cryptocurrency markets.

Bitcoin Amid Market Consolidation And Institutional Adoption

Opening the discussion, Novogratz touched on the remarkable rally Bitcoin has experienced, while also suggesting a potential consolidation phase. “We’ve come a long way fast, both in US stocks and in crypto… It wouldn’t surprise me if there’s some consolidation,” he stated.

Despite this, he emphasized the significant milestone achieved with the opening of the institutional and Retail Investment Advisor (RIA) channels to Bitcoin, particularly through ETFs. “We’ve got baby boomers who own most of the wealth in America, and they’re getting their first easy access to Bitcoin… And I don’t think that’s going to stop,” Novogratz elaborated, underlining the transformative impact of ETFs on Bitcoin accessibility.

When probed about the pace at which financial advisors could start recommending Bitcoin, Novogratz offered an optimistic forecast: “I would tell you at least double in six months.” He attributed this to both demand from clients and the inevitable adaptation of large platforms. “Their customers are calling and bitching at them and saying, we want to buy Bitcoin with you,” he quoted, highlighting the grassroots demand driving institutional platforms towards crypto adoption.

Addressing potential short-term price movements, Novogratz candidly acknowledged the possibility of a downturn. “It could be some regulatory kerfuffle, it could just be the market got a little long and you get people scared,” he speculated, pinpointing a price range of “$45,000… $42,000” as the potential downside. This acknowledgment of volatility underscores his realistic view of the crypto market’s susceptibility to external pressures and internal dynamics.

BTC Price Targets

Looking ahead, Novogratz responded to Tom Lee’s prediction of Bitcoin reaching $150,000 by year’s end with cautious optimism. While hesitant to commit to a specific number, he concurred that Bitcoin is likely to retest its all-time highs, emphasizing the market’s momentum when it attracts new buyers.

“You know, when markets get new buyers and start breaking out, it’s hard to have a price prediction,” he remarked, suggesting that surpassing the $69,000 mark could open the door to unprecedented price levels like $125,000 to $150,000, contingent on broader economic conditions such as the Federal Reserve’s interest rate policies.

Delving into Bitcoin’s correlation with the macroeconomic environment, Novogratz presented a nuanced perspective. He acknowledged Bitcoin’s dual identity as both a macro asset and a nascent technology in an adoption cycle.

On the topic of Bitcoin’s correlation with broader economic indicators, Novogratz highlighted the dual narrative that has come to define Bitcoin’s market behavior. “It’s a macro asset…And the second, we’re early on in the life cycle, so there’s an adoption cycle,” he pointed out.

Thus, he emphasized the unique position of Bitcoin at the intersection of a burgeoning asset class and a macroeconomic hedge. He added, “Right now, this is all adoption. This is new buyers coming in and being told the big-picture story that you need to have this in your portfolio.”

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Analyst Foresees Bitcoin Downtrend Until GBTC Is Liquidated

Chris J Terry, a cryptocurrency analyst and enthusiast, has revealed his insights on the price action of Bitcoin, predicting a continuous decline in the price of the crypto asset.

Analyst Says Bitcoin Will Continue To Drop

The crypto analyst shared his insights regarding Bitcoin with the cryptocurrency community on the social media platform X (formerly Twitter), anticipating a possible “continuation of a flat or declining trend.”

He highlighted that the downtrend will continue until Grayscale Bitcoin Trust (GBTC) is fully “liquidated.” According to him, the liquidation will be possible with a whopping $25 billion worth of selling activity over the next few weeks.

Terry cites Grayscale’s choice to keep Bitcoin ETF fees at 1.5% as the cause of what he sees to be the “biggest strategic error” in cryptocurrency history. This implies that Grayscale’s action might have a long-term impact on the crypto market and may prevent wider adoption.

The post read:

Looks like the BTC price will continue flat/down until GBTC is liquidated, $25B of selling over the next few weeks. Grayscale decision to keep ETF fees at 1.5% will go down as the biggest strategic error in crypto history. Greedy idiots.

His analysis emphasizes how investment vehicles are interconnected and how this affects the state of the cryptocurrency market as a whole. However, this has attracted disbelief from a few famous figures in the community.

One of the figures who has expressed disbelief is Galaxy Digital CEO Mike Novogratz. He asserted that he “disagrees” with Chris Terry’s analysis because although Novogratz experts some selling pressure activity, he believes investors will move to other ETFs, especially supporting BTCO. Novogratz also pointed out that the Invesco Galaxy Bitcoin ETF (BTCO) is his favorite among the products.

Furthermore, Novogratz highlights the significance of maintaining perspective in light of transient market conditions. He noted that the latest development will facilitate older investors’ or boomers’ entry into the crypto landscape.

In addition, he has highlighted the potential for enhanced leverage by having 4×5 exposure to Bitcoin via BTCO. He then shared an optimistic look, noting that “BTC will go higher in the next six months after this indigestion.”

BTC Sees $25 Million Outflows 

A recent report from Coinshares has revealed that Bitcoin witnessed an outflow of a whopping $25 million. Coinshares shared the information in its most recent weekly “Digital Asset Fund Flows.”

It also noted a massive $11.8 billion in BTC trading volume last week. According to Coinshares, this is seven times more than the average weekly trading activity recorded in 2023.

There were notable withdrawals from digital asset investment products last week, totaling about $24.7 million. Notably, this spike in trading activity indicates that ETFs account for 63% of all Bitcoin volumes on reliable exchanges.

As of the time of writing, Bitcoin was trading at $40,827, indicating a decline of 2.16% in the past day. Despite the price drop, its trading volume is currently up by over 81% in the last 24 hours.

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Bitcoin A Tad Closer To $40,000 – Is $41K The Next Stop In A Few Days?

Maintaining its lofty position—the highest it has reached in the last 18 months—Bitcoin is once again on the edge of a potential price increase.

With a notable 10% gain over the previous month and more than a doubling of its value over the same period last year, the markets valued Bitcoin (BTC) at over $38,600 on Friday morning.

The alpha coin’s supporters credit its strong success thus far to the excitement around spot Bitcoin ETFs, like the one put up by BlackRock, which might be approved at any time.

During European morning hours on Friday, Bitcoin almost reached the coveted $40,000 mark, hitting $38,810 for the first time since May 2022. Expectations of increasing institutional demand have supported the increase, which is a continuation of a solid multi-month run.

Data from cryptocurrency market tracker Coingecko indicates that the coin is up approximately 2% on the day, and sustaining a 3% gain in the last seven days.

Expert Predictions For Bitcoin: What They Say

Experts are becoming increasingly fixated on the ETF, as approval of the product approaches. An important piece of information comes directly from Bloomberg analyst James Seyffart, who projects that the clearance date would occur between January 5 and January 10, 2024.

This projection follows a string of purposefully extended deadlines, indicating a concerted attempt by the SEC to accept several ETF applications at the same time.

Seyffart’s analysis focuses on the timelines for Hashdex and Franklin Templeton, suggesting that the timeline to green light all 12 spot Bitcoin ETF applications may coincide between January 5 and 10.

The founder and chief market strategist of NorthmanTrader, Sven Henrich, offered his predictions for the present and future of the Bitcoin market. He examined short-term forecasts, the structural soundness of the market, and made comparisons with past market patterns.

Henrich projected a possible shift to between $41,000 and $43,000, especially as the year came to a finish. He did, however, stress the need for caution because of the cryptocurrency’s association with more general market trends, particularly in the tech industry.

Mike Novogratz, a well-known businessman and cryptocurrency advocate, expressed unrelenting optimism about the trajectory of Bitcoin and attributed his positive perspective to the much anticipated approval of a spot Bitcoin ETF.

Is $41K The Next Stop For Bitcoin?

Novogratz thinks that Bitcoin’s value will go through the roof if big financial entities like BlackRock and Fidelity start to use it, which will cause its price to reach all-time highs.

The bitcoin community is growing increasingly optimistic that the price of the cryptocurrency may rise to $41,000 in the next few days as it approaches the $40,000 threshold. Because of the market’s volatility, traders are constantly on the lookout for the next move.

It is unclear if Bitcoin will run into resistance or continue on its current upward trend. By constantly observing price charts and market indicators, investors prepare themselves for the dynamics of the market as they develop.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Shutterstock

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BlackRock CEO Larry Fink Is The Best Thing To Happen To Bitcoin, Mike Novogratz Says

BlackRock officially announced its entrance into Bitcoin earlier this year by filing for a Spot Bitcoin ETF with the United States Securities and Exchange Commission (SEC). Although the regulator is yet to accept the filing, CEO Larry Fink has also made some supportive comments, comparing BTC to digital gold. 

In light of these events, Galaxy Digital CEO Mike Novogratz has come forward to share his opinions on BlackRock CEO Larry Fink and how he affects the digital asset.

BlackRock CEO’s Pivoting Sentiment Toward Bitcoin

Galaxy Digital CEO Mike Novogratz has stated that BlackRock’s CEO Larry Fink’s change of heart is the best thing to happen to Bitcoin. 

“I think the most important thing that happened this year in Bitcoin is Larry Fink,” Novogratz mentioned during an interview on Bloomberg TV with David Rubenstein.

Novogratz believes Fink’s acceptance of Bitcoin highlights a shifting sentiment towards Bitcoin and other digital currencies worldwide. 

According to him, “180 million people around the world, without a gun to their head, take their hard-earned savings and store it in this community of people that run this technology, you know, called bitcoin.”

He further opined that Fink’s change of heart, alongside the increasing adoption of cryptocurrencies, could help Bitcoin surpass its all-time high of $69,000 recorded in 2021. 

Blackrock’s CEO Larry Fink was long known to be a skeptic of cryptocurrencies as he once went as far as tagging BTC an “index of money laundering.” 

“Bitcoin just shows you how much demand for money laundering there is in the world,” Fink stated in 2017.

Bitcoin (BTC) price chart from Tradingview.com (BlackRock)

However, there has been a change of heart from the CEO as earlier in June, BlackRock filed an application to the SEC to establish a Bitcoin spot ETF, a move that saw some other institutions file a similar application. 

In fact, in a show of support for cryptocurrencies, Fink stated that crypto, especially bitcoin could “revolutionize finance.” During an interview with Fox Business, he stated: “We do believe that if we can create more tokenization of assets and securities – that’s what bitcoin is – it could revolutionize finance.” 

Regulatory Environment Far From Certain

Novogratz also noted Ripple’s recent victory over the SEC, with a judge ruling that the XRP token isn’t a security when sold on secondary exchanges. The Galaxy Digital CEO believes the court’s decision highlights the fact that regulators are still not familiar with the crypto space, and regulations from these regulators “are nowhere close to clear.”

The United States Securities and Exchange Commission has, so far, continued to label many cryptocurrencies as “securities” and filed separate lawsuits against different crypto exchanges and firms for allowing the trade of “unregistered securities.” 

However, if the recent ruling is anything to go by, it is obvious that the regulators are mistaken, and there is a need for the US Congress to enact crypto-related laws for stakeholders (including regulators) to gain more clarity on how to navigate the industry regulatory-wise.