Michael Novogratz said that he expects bitcoin to consolidate in the $7,000-$10,000 range.
Michael Novogratz, founder and CEO of cryptocurrency merchant bank Galaxy Digital, has said that he expects bitcoin (BTC) to consolidate in the $7,000-$10,000 range, Bloomberg reports on May 30.
Per the report, during a conference call discussing his company’s quarterly earnings, he noted that “on a go-forward basis, bitcoin probably consolidates somewhere between $7,000 and $10,000.” Novogratz also added:
“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.”
Bloomberg reports that Novogratz credits this year’s rally to mainstream acceptance of cryptocurrencies, as well as attention towards blockchain technology by Wall Street and technology firms. According to him, both Microsoft’s use of bitcoin’s blockchain for identity management and Facebook’s rumored cryptocurrency project gave a lot of credit to the industry.
According to the former Fortress Group hedge-fund manager and Goldman Sachs Group Inc. partner, there has been a substantial shift in how cryptocurrencies are perceived:
“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.”
When it comes to Galaxy Digital’s earnings, in the three months that ended on March 31, the company had a net income of $12.9 million, while the company reported a net loss of $134 million in the same period a year earlier. The income was reportedly mostly the result of crypto assets appreciation and investment gains. Novogratz concluded:
“We really do feel significantly better about the business.”
As Cointelegraph recently reported, Novogratz has suggested that one of the crypto assets created by social media giants will succeed.
Yesterday, news broke that digital currency investment firm Dadiani Syndicate has reportedly been approached by a wealthy client to buy as close to 25% of the bitcoin supply as possible.
