Bitcoin To Stay Under $75K Until the US Election or Fed Cuts Rates, Says Novogratz

Novogratz Says Bitcoin Will Stay Below $75K Until US Elections or Fed Rate Cut

Bitcoin’s price could remain stuck between $55,000 and $75,000 for the next few months, according to Mike Novogratz, CEO of crypto investment firm Galaxy Digital.

Novogratz said in Galaxy’s first-quarter earnings call that he sees Bitcoin consolidating in this range until the upcoming U.S. presidential election provides clarity on crypto regulations or the Federal Reserve begins lowering interest rates due to the economic slowdown.

“We are in the consolidation phase in crypto,” Novogratz said. “Bitcoin, Ethereum and everything else will consolidate, what does that mean? That means it’s probably somewhere between $55,000 and $75,000 until the next set of conditions, the next market events will take us higher.”

Bitcoin has been trading in a range of $55,000 to $75,000 since late February, after rising to an all-time high of over $73,000 in March following the launch of spot Bitcoin ETFs and the most recent Bitcoin halving event.

While some expected the inflection point that the Bitcoin ETF launched to continue to encourage large institutional inflows to occur, that has yet to happen, according to Novogratz. But he said the slow process of asset managers offering crypto products to clients is still steadily leading to wider adoption in traditional finance.

Looking ahead, Novogratz believes the US presidential election could be pivotal for crypto’s regulatory future, depending on whether Democrats maintain an anti-cryptocurrency stance. The Biden administration recently signaled it would veto a reversal of a rule that would allow crypto companies to record customer assets as liabilities.

“This read to the crypto community as Democrats saying no to crypto,” Novogratz said, contrasting comments from Donald Trump implying he would be more crypto-friendly if re-elected.

According to Galaxy CEO, the Fed cutting interest rates in response to economic weakness could also increase crypto prices.