Galaxy Digital CEO: Bitcoin may fall back to $55,000! Then break through the previous high

Bitcoin once reached the US$64,000 mark this week, approaching the record high of US$69,000 set in 2021, but then began to fall back and is currently oscillating around US$61,000. Mike Novogratz, founder and CEO of Galaxy Digital, said in an exclusive interview with Bloomberg on Thursday that he believes that Bitcoin may see some corrections before hitting new highs: I would not be surprised if there are some adjustments. If there is a correction, BTC A pullback to around $55,000 is possible before reaching new highs.

Bitcoin prices have risen 40% this year after the U.S. Securities and Exchange Commission (SEC) approved the listing of a Bitcoin spot ETF. Mike Novogratz described the current upward trend as the price discovery process that occurred after the listing of the Bitcoin spot ETF. He believed that the listing of the spot ETF brought new buyers and sellers, increasing market activity. This process makes the price of Bitcoin more market transparent and liquid, providing investors with more trading opportunities. Novogratz believes that the listing of Bitcoin spot ETF is a major progress for the cryptocurrency market and is expected to further promote the value and recognition of Bitcoin. He emphasized that the listing of ETFs will attract more traditional investors into the cryptocurrency market

In Mike Novogratz’s view, large institutional players are less leveraged in the current cycle compared to the recent 2021 bull market. Low, but the leverage level of retail traders is too high. He quoted the leverage level data provided by offshore cryptocurrency trading platforms and pointed out: I think the current market leverage is too high. This happens after a big rise, and there will be a market cleansing. People cannot afford such a large amount of leverage, and for millennial and Gen Z investors who are chasing highs, some will make money and many will be eliminated.

It is estimated that the Ethereum spot ETF will be listed this year

In addition, Mike Novogratz predicts that the Ethereum spot ETF will be approved by the SEC for listing sometime this year. Galaxy Digital has cooperated with Invesco to submit an Ethereum spot ETF application. In addition to Galaxy Digital/Invesco, financial institutions such as BlackRock, Hashdex, ARk21Shares, VanEck, and Fidelity have submitted a total of 7 Ethereum spot ETF applications.

In the past few weeks, the SEC has successively postponed the application decision deadlines for Ethereum spot ETFs such as Fidelity, BlackRock, Grayscale, Invesco/Galaxy, etc. Bloomberg analyst James Seyffart previously pointed out that this is completely true. It is expected that the only important date for the Ethereum spot ETF at this time is May 23, as this is the final approval deadline for VanEck’s application.

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