Galaxy Digital CEO: Bitcoin May Retrace to $55,000 Before Breaking Previous Highs

Galaxy Digital CEO Mike Novogratz said in an interview with Bloomberg TV that before Bitcoin continues to rise to higher levels, there may be a pullback. Novogratz added that a correction could potentially cause Bitcoin to fall to the level of $55,000, before surging to new highs again.

This week, the price of Bitcoin rose by 20%, surpassing the $60,000 mark, thanks to the approval of a Bitcoin futures ETF in the United States. This not only attracted a significant influx of new capital but also pushed Bitcoin into a “price discovery” phase.

However, Novogratz also added that the market may become frothy as a result, with some investors starting to engage in unsustainable high-leverage trading. Many FOMO traders, especially those from Generation Y and Z, may suffer losses as a result.

Nevertheless, in the long run, a Bitcoin futures ETF may trigger a wealth transfer among the baby boomer generation and lead to a significant increase in Bitcoin’s price. The token’s price is expected to surpass its 2021 peak of around $69,000 in the long term. Novogratz stated that the baby boomer generation holds approximately $85 trillion in wealth, while the total market value of Bitcoin is only slightly over $1.2 trillion. If they were to allocate 1% to 3% of their investments to Bitcoin, it would have a significant impact on the price.

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