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Galaxy Digital CEO Believes Bitcoin Likely to Remain Range Bound

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VOC, Voice of Crypto, Bitcoin, BTC

Mike Novogratz, founder of Galaxy Digital and a crypto investor worth expects Bitcoin to remain range bound despite the recent price pump. He believes that Bitcoin will not exceed $30,000 soon, and there’s no sign of institutional money entering yet.

Bitcoin is currently exchanging hands for $23,838 levels with a market cap of $454 billion. After months of selling, investors can finally breathe easy again with the recent pullback giving fresh hope to their fortunes.
Meanwhile, the Galaxy Digital CEO has predicted that Ethereum will reach $2,200 or higher by the end of this year. The recent momentum and software upgrade leading up to The merge may be factored into this optimism.

Mike Novogratz isn’t predicting any mega bull runs this year either. He said he doesn’t see the same mania we noticed in 2021 or 2017 that led to major price movements.

Bitcoin Price Analysis

Bitcoin Price

Bitcoin Price | Source: TradingView

Optimism and expectations increased throughout the crypto market as Bitcoin bounced above $24,000. At the time of writing, Bitcoin is trading at around $24,779, up 2.11%. In the past 24 hours, Bitcoin hit a high of $24,203 and a low of $23,279.

Investors are waiting for the US Consumer Price Index (CPI) report to be released on August 10 to see if the country’s inflation peaks. While this should theoretically somewhat facilitate a crypto recovery, experts say the risk of a major stock market correction remains and it is still correlated with major cryptocurrencies.

BlackRock chief executive Larry Fink is concerned that risk assets are simply experiencing a small rally amid a protracted bear market.

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Today, the Fear & Greed Index increased from 30/100 to 42/100. After avoiding levels below 30, BTC’s return to $24,000 boosted market sentiment.

BTC must avoid the $23,741 pivot point to target the $24,245 high and the first major resistance at $24,322. A drop across the pivot will take Bitcoin towards the first major support at $23,240.

Galaxy Digital Tripled Its Losses in Q2

Cryptocurrency-focused financial services firm Galaxy Digital posted significant losses during the second quarter of 2022 amid slowing prices in the market.

According to a financial results report released, Galaxy had a net loss of $554.7 million in the second quarter. The figure is more than triple the loss of  $182.9 million that the company reported for the same period of the previous year. The firm said the massive loss jump was mainly due to the cryptocurrency market downturn and investments in its trading business. However, it was partially offset by profitability in mining.

Galaxy reported that its Association Mining and Investment Banking operating business lines contributed $1.1 million to the comprehensive net income in the quarter. The company said the mining business posted a record revenue of $10.9 million in the quarter and increased net comprehensive income by 204% compared to last year.

The firm held a liquidity position of $1.5 billion, including $1 billion in cash, and a net digital asset position of $474.3 million, of which about $256.2 million was reported to be in non-algorithmic stablecoins.

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Compared to the previous period, Galaxy held a position of $910 million in net digital assets as of March 31. This decrease was mainly due to the sale of certain liquid positions to increase the cash balance and general decreases in the prices of cryptocurrencies, the firm indicated.

Galaxy investments, which stood at $753.9 million, also decreased by around 25% compared to the previous period. The company said this was primarily motivated by falling valuations of certain investments and added that it has followed a ” conservative approach ” to investing by focusing on smaller investments.

 

 

 

Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)

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Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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