Galaxy’s CEO, the well-known figure Mike Novogratz, stated that Bitcoin will likely trade between $55,000 and $75,000 until a “new narrative” emerges. Novogratz suggests that Bitcoin’s price movement may have entered a long dormancy until the market “narrative” takes a new shape. According to the famous figure, this narrative could emerge in two ways: either the US central bank will lower interest rates, or regulatory bodies will ease the pressure on crypto.
Bitcoin’s Search for a New Narrative
On Tuesday, while discussing the company’s earnings, Novogratz mentioned that after a strong first quarter, crypto is going through a consolidation phase, and Bitcoin’s price could fluctuate between $55,000 and $75,000 until it rises to new levels following the next market events.
Novogratz said the following in an interview with Bloomberg on Tuesday:
Bitcoin always needs a narrative. If you think of Bitcoin as digital gold, there are always two narratives: The first is macro, and the second is adoption.
Looking at Bitcoin’s price historically, it has been influenced by macroeconomic trends. Generally, it has risen during dovish central bank policy periods and fallen during hawkish periods.
At the beginning of the month, Bitcoin fell below $57,000 due to fears that the Federal Reserve might continue with high-interest rates for a while during the upcoming FOMC meeting. Although this was later proven true, the central bank also promised to slow down the pace of tightening, which is a boon for market liquidity, leading to a recovery in BTC price after the meeting.
Fed and Regulators
Until there is a change in macroeconomic data and a decrease in inflation rates, Novogratz states that the Fed is “on hold,” and Bitcoin is aligning with it.
Until we see this movement in short-term rates both here and abroad and/or more regulatory clarity, Bitcoin will likely trade in a range.
The 50% rise in Bitcoin during the first quarter of the year is largely attributed to the excitement generated by the newly launched Bitcoin spot ETFs. However, despite this, net outflows have been observed in ETFs during the second quarter of the year so far.
Both Bitcoin’s halving and the introduction of the Runes token standard occurred last month, creating two significant narratives for Bitcoin.
Novogratz also highlighted regulatory bodies, stating that greater clarity in cryptocurrencies is expected after the US federal elections this fall.
