Mike Novogratz Believes A Bitcoin Price Correction Is Coming Ahead of Current Euphoria

Key Points:

• Michael Novogratz of Galaxy Digital warns of a potential Bitcoin price correction, predicting a retrace to $55,000 before hitting new highs, citing over-leveraged retail traders.
• Novogratz highlights differences between the current Bitcoin rally and the 2021 bull run, noting reduced institutional leverage but concerning levels of retail leverage from offshore platforms.
• He anticipates SEC approval for Ether ETFs this year and expresses skepticism about Galaxy’s US listing timeline due to perceived regulatory challenges.

According to Bloomberg, Galaxy Digital founder Michael Novogratz warns of a potential Bitcoin price correction before reaching new highs, citing over-leveraged retail traders and the need for corrections in the market.

Read more: Bitcoin Price Prediction For 2024, 2025, 2026 and 2030: Super Crypto Bull Run

Galaxy Digital Founder Caution: Bitcoin Price Correction Ahead Amid Retail Trader Leverage

Novogratz predicts BTC could retrace to $55,000 before surging to record levels.

In an interview with Bloomberg TV, Novogratz described the ongoing rally as a “price discovery” phase, fueled by the introduction of Bitcoin exchange-traded funds (ETFs), attracting a new wave of investors. Bitcoin, already up over 40% this year, traded around $61,000 at the time of writing.

Novogratz highlights the difference between the current cycle and the 2021 bull run, highlighting reduced institutional leverage but concerning levels of retail leverage, particularly from offshore crypto trading platforms, which could lead to a possible Bitcoin price correction coming soon.

“There will be a washout. People can’t sustain this much leverage,” Novogratz cautioned, emphasizing the risk for millennials and Gen-Z investors chasing highs.

Novogratz Foresees SEC Approval for Ether ETFs, Galaxy’s Listing Challenges

Additionally, Novogratz believes that investments in digital assets should only increase when the boomer wealth bubble bursts and transfers to a new generation.

Regarding Ethereum, Novogratz anticipates SEC approval for Ethereum ETFs this year. Galaxy Digital, in collaboration with Invesco, is among the applicants seeking to launch an Ethereum ETF.

When questioned about Galaxy’s listing timeline in the US, Novogratz expressed skepticism due to what he perceives as an “unfriendly regime” persisting until after the election.