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The CEO of the American financial firm Galaxy Digital, Mike Novogratz, stated that by the end of the year, Bitcoin’s price is expected to range between $60,000 and $80,000.
He mentioned that in recent weeks, private investors, rather than large hedge funds, have been playing a pivotal role in the cryptocurrency market. These investors are primarily driving the demand for the leading cryptocurrency.
“I anticipate that this year Bitcoin will trade within the range of $60,000 to $80,000. At the $80,000 level, we may encounter significant selling pressure, but once this threshold is surpassed, the market will enter a phase of genuine price discovery,” Novogratz suggested.
He highlighted that retail investors are increasingly utilizing indirect methods to invest in Bitcoin. Specifically, spot exchange-traded funds, such as the iShares Bitcoin Trust ETF (IBIT), and shares of the largest publicly traded corporate Bitcoin holder, Strategy, are gaining popularity. Many market participants view Strategy’s shares, trading under the ticker MSTR, as a sort of “substitute for Bitcoin.”
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Commenting on the aggressive Bitcoin accumulation strategy employed by Strategy’s CEO, Michael Saylor, Novogratz noted that his actions significantly impact the market. According to the head of Galaxy Digital, the regular conversion of funds raised by the company through stock offerings into Bitcoin has created a unique cycle of trust among investors.
“I would bet that Saylor will not sell a single Bitcoin over the next three years,” Novogratz asserted.
He believes that truly critical scenarios for the price of the leading cryptocurrency could only materialize if the wallets of Bitcoin’s anonymous creator, Satoshi Nakamoto, are activated or if the network’s cryptographic security is breached using quantum computers.
The head of Galaxy Digital also pointed out the economic situation in the United States. In his view, the country’s economy is experiencing what is termed a K-shaped recovery, where affluent individuals and those in the tech sector continue to benefit from market growth, while the circumstances for many other Americans are deteriorating.
Increasing economic inequality and the gradual decline of the dollar’s global influence are driving investors to seek alternative assets, including Bitcoin, according to Novogratz.
Previously, the head of Galaxy Digital stated that the era of “Humpty Dumpty,” characterized by chaotic fluctuations in the cryptocurrency market, is giving way to a more mature phase where the decisions of major players dictate the prices of significant cryptocurrencies.
