As Bitcoin continues to approach its previous all-time high, expectations of a correction are growing among industry experts before the digital asset can push further upward.
Founder of Galaxy Digital, Mike Novogratz, shared his insights on Bloomberg TV, suggesting that despite Bitcoin surging past $60,000, a correction may be on the horizon.
Novogratz emphasized the ongoing price discovery phase for Bitcoin, hinting at potential corrections that could bring the price down to the mid-$50,000s before another surge to new highs. The recent price increase, fueled by the approval of spot BTC ETFs in the U.S., has attracted new investors and pushed Bitcoin into uncharted territory.
Concerns were raised by Novogratz about the exuberance in the market, particularly among retail investors who may be overleveraging their positions in the volatile environment. He particularly cautioned millennials and Gen Z traders about potential losses.
Looking forward, despite short-term fluctuations, Novogratz maintains a bullish outlook on Bitcoin, highlighting the possibility of a substantial influx of wealth from baby boomers into the cryptocurrency market. A mere 1% to 3% shift of their investments into Bitcoin could significantly impact the digital asset’s value.
The recent rally that saw Bitcoin briefly hitting $64,000, reaching levels not seen in over two years, has sparked speculation regarding the start of a new bull market for cryptocurrencies. Currently trading at $61,500 according to CoinGecko data, Bitcoin’s trajectory remains uncertain.
While optimism is high, Daniel Yan, co-founder of Matrixport, advises caution amidst the bullish sentiment. He warns of potential market euphoria and volatile macroeconomic factors that could lead to increased volatility. Yan suggested a possible correction of around 15% by the end of April, urging investors to prepare for potential retracements.
