Bitcoin Price Correction Incoming: Galaxy Digital Chief Executive

As Bitcoin witnesses its spectacular surge towards the all-time high, Galaxy Digital CEO Mike Novogratz has warned of a potential correction before the cryptocurrency can stabilize at elevated levels. 

As reported earlier by TheCoinRise, Novogratz pointed out that spot Bitcoin ETFs will drive institutional investments in BTC, and 2024 will be an amazing year for the leading digital asset.

Bitcoin to Undergo a Correction

Speaking to Bloomberg TV, the billionaire Galaxy Digital executive and crypto enthusiast expressed caution, emphasizing that while a correction is likely, predicting the exact high for Bitcoin remains challenging due to the ongoing process of price discovery.

“I wouldn’t be surprised to see some correction and some consolidation, but I’m very loath to pick a bitcoin high because I really do believe this is price discovery,” Novogratz stated.

Bitcoin Going to the Mid-$50,000s

His comments suggest a belief that BTC’s recent remarkable rally is a result of the market exploring and determining its true value.

The CEO speculated that a correction could bring Bitcoin down to the mid-$50,000s before experiencing another surge, possibly reaching new heights. 

This prediction follows a week in which the leading cryptocurrency recorded a 20% jump, surpassing the $60,000 mark, fueled by the inflow of funds into spot bitcoin exchange-traded funds (ETFs). These recently approved ETFs, the first of their kind in the United States, have propelled Bitcoin into what Novogratz terms a “price discovery” phase.

Market Connection Incoming

While acknowledging the positive impact of ETFs in attracting new investors to the crypto space, the Galaxy Digital chief executive expressed concerns about the current frosty state of the market. 

The influx of retail investors, particularly millennials and Gen Z traders, utilizing a potentially unsustainable amount of leverage, raises apprehensions about a possible market correction.

Novogratz Optimistic on BTC’s Future

Looking beyond the short term, Novogratz remains optimistic about Bitcoin’s trajectory. He pointed out that the involvement of baby boomer wealth in BTC funds could drive the cryptocurrency to even greater heights. 

With the baby boomer cohort accounting for approximately $85 trillion in wealth, a modest shift of 1% to 3% of their investments into Bitcoin could provide a substantial tailwind for the cryptocurrency.

Novogratz emphasized that “3% of that is two and a half trillion. The whole market cap of bitcoin is only a little more than 1.2 trillion.” This perspective underscores the potential for significant growth if even a small fraction of baby boomer wealth flows into BTC.