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Novogratz on Near-Term BTC Consolidation: ‘Trees Don’t Grow to the Sky’

Novogratz on Near-Term BTC Consolidation: ‘Trees Don’t Grow to the Sky’

Michael Novogratz

Bitcoin bull Michael Novogratz believes that the bitcoin price is headed to a narrow trading range of between $7K and $10K even as the price hit $9K today. | Source: YouTube/WallStreetWeek

By CCN: Mike Novogratz’s expectation for bitcoin price consolidation is starting to look more feasible since BTC abruptly took a dive today. The high-profile trader believes bitcoin is poised for near-term consolidation to a narrow range despite recent market momentum.

Novogratz, who is at the helm of crypto merchant bank Galaxy Digital, reportedly held a conference call today discussing his firm’s Q1 performance. According to Bloomberg, the Wall Street veteran believes that the bitcoin price “probably consolidates somewhere between $7,000 and $10,000,” adding:

“You know, trees don’t grow to the sky. If I’m wrong on that, I think I’m wrong to the upside, that there’s enough excitement and momentum that it could carry through.”

Novogratz hasn’t abandoned his long-term bullish outlook on bitcoin. It’s just in the near term, he expects that there could be some consolidation. And he’s not closing the door to the possibility of BTC breaking out of the range he described. It is perhaps a more sobering outlook than to the moon, but it is also one that appears to be quite realistic.


| Source: Bloomberg

That excitement he’s talking about has a little something to do with some major technology companies dipping their toes into the crypto space. Microsoft is building an ID platform on the Bitcoin blockchain while Facebook is poised to launch its own cryptocurrency for payments, GlobalCoin. All of this, Novogratz says, is positive for crypto mainstream adoption. While some have argued that crypto doesn’t need validation, Novogratz suggests these brands offer some heft to the market, saying they “both were wild credentializers for this space.” He added:

“We have gone from, you know, crypto as an experiment, is it real? Is it tulips? To crypto is going to be a substantial part of the financial and consumer infrastructure of the world.”

Latest piece from Galaxy Research – a plain English intro on blockchain and digital assets. If you are new to the space, it’s a great place to start. @luka__jankovic

— Michael Novogratz (@novogratz) May 23, 2019

Galaxy Digital’s Performance

After being frostbitten by the crypto winter, Galaxy Digital is back in the black. The firm generated Q1 net income of $12.9 million vs. reportedly losing millions during last year’s market downturn. Bitcoin’s triple-digit percentage increase year-to-date has generated a great deal of excitement across the ecosystem.

“We really do feel significantly better about the business.”

Want to set the record straight. Galaxy is still a shareholder in @block_one_ , We are a large holder of $EOS tokens, and we strongly believe in the leadership of @BrendanBlumer and @bytemaster7 Very excited for their June announcement. Took profit to rebalance our portfolio.

— Michael Novogratz (@novogratz) May 23, 2019

Novogratz recently clarified that Galaxy Digital’s decision to sell a $71.2 million stake in was a reflection of the firm taking profits “to rebalance our portfolio.”

About The Author

Gerelyn Terzo

Gerelyn is Assistant Editor at CCN. Before crypto, she was covering institutional investing on Wall Street but caught the bitcoin bug soon after. She resides 13 miles outside of New York, close enough but also far enough away to escape it all. Follower her on Twitter (@cryptogerelyn) or email [email protected] Disclosure, she “hodls” bitcoin.

This article was edited by Gerelyn Terzo.

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