In an exclusive CNBC interview, Galaxy Digital CEO Mike Novogratz forecasts Bitcoin’s price movements and discusses the impact of recent ETF approvals.Novogratz highlights the significance of institutional and retail investor adoption through ETFs, suggesting a pivotal moment for Bitcoin accessibility.“It wouldn’t surprise me if there’s some consolidation,” Novogratz remarks, indicating a possible short-term price dip before a substantial rally.
This article delves into Galaxy CEO Mike Novogratz’s insights on Bitcoin’s potential short-term dip and its future trajectory amidst growing institutional adoption and macroeconomic factors.
Bitcoin’s Rally and Potential Consolidation
Mike Novogratz, CEO of Galaxy Digital, shared his perspective on Bitcoin’s recent rally and potential consolidation phase during a CNBC ‘Squawk Box’ interview. Despite a remarkable surge in Bitcoin prices, Novogratz suggests the market could see some consolidation. This phase is seen as a natural progression following the cryptocurrency’s rapid price increase and the broader market’s dynamics. Novogratz’s analysis not only reflects on past performances but also sets the stage for understanding Bitcoin’s price movements in the context of market cycles.
Institutional Adoption through ETFs
The conversation took a significant turn towards the role of ETFs in promoting Bitcoin’s institutional and retail adoption. Novogratz underscored the transformative impact of ETFs, making Bitcoin accessible to a broader audience, including baby boomers. This demographic represents a substantial portion of wealth in the U.S., and their foray into Bitcoin investing marks a critical milestone. The ease of access provided by ETFs, coupled with increasing demand from clients, is pushing financial advisors and large platforms to adapt and offer cryptocurrency investments, potentially doubling Bitcoin recommendations in six months.
Short-term Volatility and Price Predictions
Addressing Bitcoin’s price volatility, Novogratz acknowledged the potential for short-term downturns, citing regulatory uncertainties or market overextensions as possible triggers. However, he pinpointed a support level between $42,000 and $45,000, below which the price might stabilize before resuming its upward trajectory. This realistic take on market fluctuations underscores the importance of being prepared for volatility in the crypto markets.
Long-term Outlook and Macro Correlations
Looking ahead, Novogratz expressed cautious optimism regarding Bitcoin’s price potential, aligning with Tom Lee’s prediction but emphasizing the market’s momentum and the influx of new buyers. He elaborated on Bitcoin’s unique position as a macro asset influenced by broader economic policies, including the Federal Reserve’s interest rate decisions. Moreover, Bitcoin’s adoption cycle points to its growing acceptance and integration into mainstream financial portfolios, suggesting a bullish outlook based on both technological adoption and its role as a macroeconomic hedge.
Conclusion
Mike Novogratz’s insights offer a comprehensive analysis of Bitcoin’s current state and its future prospects. While acknowledging short-term volatility, the emphasis on institutional adoption through ETFs and the potential for significant long-term growth paints a positive picture for Bitcoin. As the cryptocurrency continues to navigate the complexities of the financial landscape, its dual role as a macro asset and a technology in its adoption cycle positions it for unprecedented levels of interest and investment.
$BTC #Bitcoin #Write2Earn #Galaxy

Post By: CryptosHeadlines.com

Galaxy Digital predicts that the introduction of a spot-based Bitcoin exchange-traded fund (ETF) would draw substantial capital and drive BTC’s price up by 74% during the first year following its launch.
This projection coincides with growing expectations that the U.S. securities regulator may approve one or more of the ETF proposals currently under review.
Galaxy Digital Predicts Positive Impact of a Spot Bitcoin ETF
Galaxy Digital asserts that a spot Bitcoin ETF would offer investors direct exposure to Bitcoin without requiring them to possess the digital asset. They believe that gaining approval for this investment product, which offers certain advantages over current options, would accelerate adoption.
Galaxy Digital, one of the entities seeking approval from the U.S. Securities and Exchange Commission (SEC) to issue America’s first spot Bitcoin ETF, conducted an analysis to gauge the market for an ETF tracking the cryptocurrency’s price.
The firm anticipates that a spot Bitcoin ETF could significantly boost adoption for two key reasons: it would broaden access across different wealth segments and enhance acceptance through official recognition from regulatory bodies and trusted financial service providers.
According to their research, Galaxy Digital estimates that a Bitcoin ETF could attract $14 billion in the first year post-launch. This figure is projected to rise to $27 billion in the second year and $39 billion in the third year following the launch.
Charles Yu, a research associate at Galaxy Digital, also anticipates a 74% increase in Bitcoin’s price during the first year following ETF approval. This estimate is based on a Bitcoin price of $26,920 per coin recorded on September 30, 2023, while Bitcoin is currently trading at over $34,600.
SEC Delays Spot Bitcoin ETF Approvals While Anticipation Grows
In 2021, the SEC granted approval for ETFs holding Bitcoin futures, but it has yet to give the green light to a spot Bitcoin ETF in the U.S. Previous rejections cited concerns about fraud, market manipulation, custody issues, and investor protection.
Earlier this year, the regulator accepted several applications for review, including Galaxy Digital’s partnership with Invesco to compete with major financial firms like BlackRock. However, the SEC has delayed making decisions on many of these applications.
Galaxy Digital expressed in a blog post, “Anticipation that ETFs will be approved soon is rising, and our analysis suggests these products could see significant inflows, primarily driven by the wealth management channels that cannot currently access safe and efficient Bitcoin exposure at scale.”
The crypto investment firm concluded, “Inflows from ETFs, market discussions about the upcoming Bitcoin halving in April 2024, and the possibility of interest rates either having peaked or about to peak in the near term all indicate that 2024 could be a pivotal year for Bitcoin.”
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
#Bitcoin #CryptoNews #Galaxy #BTC #BitcoinETF

Galaxy Digital Holdings Ltd. has announced its financial results for the year ended December 31, 2022, for both Galaxy Digital Holdings LP and itself. The company’s founder and CEO, Michael Novogratz, stated that 2022 was a pivotal year for the company, and despite the unprecedented macroeconomic events faced by the industry, it successfully stayed on course and took advantage of strategic opportunities to build its operating businesses for the future. Novogratz expressed confidence in the company’s go-forward strategy, businesses, and team.

Galaxy Digital Holdings LP generated about $150 million in income before tax as of March 24, 2023. The company maintained a strong liquidity position after recent disruptions in the commercial banking sector. Galaxy Digital Holdings Ltd. anticipates net profits for the first quarter of 2023 in its operating businesses and positive gains from its balance sheet holdings of liquid coins and investments.

The company’s trading operating business benefited from heightened market volatility and increased volumes from existing counterparties. Furthermore, Galaxy Mining has doubled its capacity since the beginning of the year, and by the end of 2023, it expects to have more than 4 EH/s of Hashrate Under Management.

Galaxy Digital Holdings LP’s net loss was $287.8 million for the fourth quarter of 2022, compared to a net income of $521.3 million in the prior year’s period. For the year ended December 31, 2022, net loss was $1.0 billion, compared to a net income of $1.7 billion for the year ended December 31, 2021. The loss was primarily due to unrealized marks to market on investments in the company’s Principal Investments portfolio, driven by depressed market conditions.

Galaxy Digital Holdings Ltd. maintained a strong liquidity position of $957 million as of December 31, 2022, including $542.1 million in cash and a net digital assets position of $415 million. However, the net digital assets balance of $415 million at December 31, 2022, was lower than the $1.2 billion at the end of the prior year.

Galaxy Trading reported continued growth of counterparty count and strong operational net revenue contributions. The company’s cumulative gross counterparty loan originations were approximately $370 million within the quarter.

The value of GT’s counterparty loan and yield portfolio decreased approximately 8% quarter over quarter. The company is focused on the strategic build-out of GalaxyOne, its unified, client-centric prime-brokerage platform for digital assets. A beta version of the trading component of the platform will be released to select customers in the second quarter of 2023.

Galaxy Asset Management reported preliminary assets under management of approximately $1.7 billion as of December 31, 2022, a 14% decrease from the previous year.

#GalaxyDigital #Galaxy #Novogratz #BTC #azcoinnews

This article was republished from azcoinnews.com