Bitcoin (BTC) Price on The Verge of Dropping To Mid-$50K – Predicts Michael Novogratz

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Bitcoin sounded bullish with a 45% surge in February alone, marking its most decisive move since December 2020 and underscoring its unmatched resilience. This impressive surge extends Bitcoin’s streak of gains for the sixth straight month, beating market expectations and boosting experts’ anticipation of an imminent crypto bull run. However, not all analysts share this ultra-bullish sentiment. Some anticipate a short-term correction before a significant upward movement. Let’s dive into analyst insights on Bitcoin’s forthcoming journey.

Bitcoin Correction: Novogratz Eyes Mid-$50K Range

In a recent Bloomberg TV interview, Galaxy Digital founder Michael Novogratz said Bitcoin could see some pullback before hitting new highs. He predicts that BTC may retrace to around $55,000 as retail traders become over-leveraged before reaching new highs. Additionally, he expects an Ethereum spot ETF to receive SEC approval sometime this year.

Novogratz chimed into a broader consolidation phase following Bitcoin’s remarkable 40% surge this year, largely fueled by the successful launch of Bitcoin exchange-traded funds (ETFs). 

Investors Wait for the Discovery Phase

Despite trading around $60,700 at the time, the analyst described the current market momentum as a “price discovery” phase spurred by ETFs, attracting a new wave of investors. However, he cautioned about the high leverage levels among millennials and Gen Z investors, suggesting a looming correction. He further sees a disparity in leverage between institutional players and retail traders, signaling potential market correction and “washouts” before resuming an upward trend.

In short, Price discovery is when buyers and sellers determine an asset’s value. That’s why analyst suggests Bitcoin is in its initial discovery phase ever as it becomes widely accessible to US investors through ETFs.

Watch out for Global Record Highs

Despite the short-term correction looming, Bitcoin is on a roll globally, hitting record highs against various global currencies this week. It’s surged 16% higher than its previous peak against the Japanese yen and set new all-time highs against the Chinese renminbi, Russian ruble, Swedish krona, and New Zealand dollar.

With Bitcoin rapidly approaching its previous highs in major currencies like the euro, British pound, Canadian dollar, and Australian dollar, experts predict more all-time highs this year. This comes after the US dollar index, measuring the dollar’s strength against other currencies, rebounded strongly in recent months.