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Bitcoin will likely remain under pressure for weeks after falling about 35% from its all-time high last month, according to one of the biggest cryptocurrency investors.
“I think we’ll consolidate for a while, four to six weeks,” said Michael Novogratz, CEO of Galaxy Digital LP, in an interview, calling a price range of $ 40,000 to $ 50,000 fair.
Bitcoin fell as low as $ 42,133 on Monday after a volatile weekend that saw Tesla CEO Elon Musk whip investors with a series of tweets following his decision to stop accepting the coin for them. car purchases due to its environmental impact. Bitcoin’s digital ledger uses a global network of computers to operate, a process known as mining.
“I took his mining comments at face value,” Novogratz said. “I don’t think it’s Bitcoin specific, that’s all that’s specific: the gold market, YouTube – all use a lot of electricity. And Elon has clean energy companies. “
The cryptocurrency industry is examining its environmental, social and corporate (ESG) governance and how to mitigate the impact of Bitcoin through things like carbon offset credits, he said.
“Like all industries, ESG is important, and the crypto industry, including Galaxy, is going to fix it,” Novogratz said.
The explosion of interest in jokes like Doge – which Musk spread on Twitter – makes it harder for people to take the larger cryptocurrency market seriously, Novogratz said in an interview with Bloomberg Television. Still, he said there was real anguish behind some of the support for Doge.
“What you are seeing is a response against the monetary policies of the United States and the world,” he said. The crypto has gotten too tribal, so much so that one of his friends who criticized Doge on Twitter received six death threats, Novogratz said.
Bitcoin is still expected to end the year higher even after the recent drop, Novogratz said. The U.S. Securities and Exchange Commission could approve a Bitcoin exchange-traded fund at the end of this year or early next year, he said.
“I guess the next catalyst is the ETF,” Novogratz said.
As Bitcoin continues to run, New York-based Galaxy – which hopes to be listed on a U.S. stock exchange in the second half of the year – reported strong first quarter results on Monday. Even after the recent volatility, Bitcoin is up about 45% for the year.
Comprehensive net income, excluding non-controlling interests, increased to $ 860.2 million, following a net comprehensive loss of $ 26.9 million in the prior year period. Counterparty trading volumes increased by over 290% year over year. Its preliminary assets under management reached $ 1.27 billion as of March 31, an increase of 58% from the previous quarter.
Galaxy is involved in a variety of businesses, ranging from mining and helping businesses with acquisitions to investing in startups. In May, Galaxy acquired crypto custodian BitGo for $ 1.2 billion. Erin Brown, who was previously chief risk officer at Jump Trading, was appointed chief operating officer on Monday.
Galaxy is currently exchanging more than 90 coins. However, the bulk of the wallet consists of 15 coins, including Bitcoin, Ethereum, and some DeFi coins, used in decentralized funding applications such as lending and peer-to-peer payments.
“Ethereum definitely has a time,” Novogratz said in the Bloomberg Television interview. He said it was the most decentralized blockchain network and had the most developers and the most applications “by far.” He said he believed Ethereum would trade between $ 2,800 and $ 4,000 during a similar “consolidation” period that he mentioned for Bitcoin.
“Let’s not miss the big picture for the small picture,” Novogratz said. “We are going through a unique generational shift in this evolution of the crypto-blockchain, where the financial infrastructure is starting to be rebuilt. This process is gaining momentum. “
– With the help of Matthew Leising
(Add a TV interview starting at the seventh paragraph.)