Bitcoin will not fall below USD 50,000, says CEO of Galaxy Digital

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Key facts:
  • “I think that is the new floor,” says the manager, in relation to the USD 50,000 mark.

  • The price of bitcoin suffered a correction to USD 67,000.

The level between $50,000 and $55,000 could be crucial for the price of bitcoin, says Galaxy Digital CEO Michael Novogratz. “I think that’s the new floor unless something dramatic happens,” he said.

The manager spoke about the possibility of a significant correction in the price of bitcoin, similar to past market cycles, in an interview with CNBC. He called BTC “a wild asset” and noted that we are currently in a period of price discovery, which could drive the coin up to USD 100,000.

Novogratz explained that The price will “continue to rise” as buying continues in nine US spot bitcoin exchange-traded funds (ETFs). He argued that once sales of funds issuing bitcoin ETFs begin, “you will see the first real correction, so I think right now all traders are watching” ETF inflows.

By the way, investment funds recorded inflows of $1 billion on March 12, as reported by CriptoNoticia, which represents a record for any ETF. “Of course, there are many other entries and exits in the bitcoin universe, but right now that has the Zeitgeist of what people are making in their business decisions,” the manager said.

“You always have to be prepared for a correction,” Novogratz emphasized when referring to the current high financing rates and stated:

I don’t think we’ll ever get below $50,000 to $55,000 again. I think that’s the new floor unless something dramatic happens.

Michael Novogratz, CEO of Galaxy Digital.

The recent rise of BTC, which on March 8 broke the USD 70,000 mark, as reported by CriptoNoticias, and a few days later exceeded USD 73,000, is largely due to the success of bitcoin ETFs. These exchange-traded funds have attracted a new group of investors to the world of cryptocurrencies, causing the price of bitcoin to rise considerably.

However, Novogratz has issued a warning about the high levels of leverage being seen in the market, especially among young investors (millennials and generation Z) looking to make big profits quickly. This could indicate that a price correction is imminent. If the market falls, some could profit, but many others could suffer considerable losses.

Novogratz also highlighted that the current situation is different from the 2021 bull run in terms of leverage. Right now, large institutional investors are less leveraged, while small investors are overleveraged, especially through cryptocurrency trading platforms.

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