The continuous rise of Bitcoin may experience a slight pause, according to Mike Novogratz, the founder and CEO of Galaxy Digital. He predicts that Bitcoin may pull back to around $55,000 and then resume its upward trend, reaching record levels by the end of the year.
Bitcoin surged to nearly $64,000 earlier this week, approaching its all-time high of $69,000 set in 2021. However, it has since retraced and is currently oscillating around $61,000.
In an interview with Bloomberg, Mike Novogratz stated that he believes Bitcoin may experience some pullback before reaching new highs. He described the current upward trend as a process of “price discovery” that emerged after the approval of the Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC) in January. According to Novogratz, the listing of the spot ETF brought in “new buyers and sellers.”
Compared to the previous bull market in 2021, Mike Novogratz observed that institutional participants have lower leverage levels in the current cycle, while retail traders have excessively high leverage levels. He cited leverage data from offshore cryptocurrency trading platforms.
Furthermore, Mike Novogratz expects that an Ethereum spot ETF will receive SEC approval for listing at some point this year. Galaxy Digital has collaborated with Invesco to submit an application for an Ethereum spot ETF. In addition to Galaxy Digital/Invesco, financial institutions such as BlackRock, Hashdex, ARk 21Shares, VanEck, and Fidelity have collectively submitted seven applications for Ethereum spot ETFs.
The SEC has recently delayed the decision deadlines for Ethereum spot ETF applications from Fidelity, BlackRock, Grayscale, Invesco/Galaxy, and others. Analyst James Seyffart from Bloomberg previously pointed out that the only important date for Ethereum spot ETFs at the moment is May 23rd, as it is the final approval deadline for VanEck’s application.
When asked about the listing timeline for Galaxy Digital, Mike Novogratz responded that the United States has had an “unfriendly regime” over the past four years, and he does not expect it to change before the election.
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