Mike Novogratz Anticipates Bitcoin Correction Before New Peak

Bitcoin is expected to undergo a correction before reaching a new all-time high, according to Mike Novogratz, CEO of Galaxy Digital, in an interview with Bloomberg Television.

“I wouldn’t be surprised by some correction and consolidation. If that happens, Bitcoin could drop to $50,000 before soaring to a new high,” he stated.

According to the expert, spot Bitcoin ETFs have brought a “new army” of buyers and sellers to the market. Novogratz also highlighted the excessive use of leverage by retail investors.

“I think the market is over-leveraged right now. This follows a rapid rise. A washout phase is coming. People can’t maintain this level of leverage,” he explained.

The CEO of Galaxy Digital also predicted that the U.S. Securities and Exchange Commission (SEC) will approve spot Ethereum ETFs by the end of 2024. His company plans to offer the instrument in partnership with Invesco.

In February, lawyer Scott Jonsson stated that if the SEC does not approve an ETH-ETF by May 2024, it will do so by mid-2025. CEO of Keyrock Kevin de Patoul assessed the chances of launching the instrument in the U.S. as above 50%.

As reported, technical analyst and head of Factor LLC Peter Brandt raised his forecast for Bitcoin’s price in 2025 from $120,000 to $200,000.

Earlier, Fundstrat co-founder Tom Lee predicted that the price of the leading cryptocurrency could rise to $150,000 by the end of 2024.