Bitcoin (BTC) price expected to fall to mid-$50,000 – Michael Novogratz predicts
Bitcoin has been strong in February alone, surging 45%, representing its most decisive move since December 2020 and highlighting its unparalleled resilience. This impressive surge continues Bitcoin’s six-month streak of gains, surpassing market expectations and boosting experts’ expectations of an imminent cryptocurrency bull market. However, not all analysts share this very optimistic sentiment. Some expect a short-term correction before a significant uptick occurs. Let’s take a look at analysts’ insights on Bitcoin’s future journey.
Bitcoin Correction: Novogratz Eyes Mid-$50,000 Range.
In a recent Bloomberg TV interview, Galaxy Digital founder Michael Novogratz said Bitcoin may see some downside before reaching new highs. He predicts that BTC could bounce back to around $55,000 as retail traders become over-leveraged before reaching new highs. He also expects an Ethereum spot ETF to receive SEC approval sometime this year.
Novogratz has entered a broader consolidation phase after Bitcoin surged 40% this year, helped by the successful launch of its Bitcoin exchange-traded fund (ETF).
Investors await the discovery phase
Despite trading at around $60,700 at the time, analysts have described the current market momentum as a “price discovery” phase facilitated by the ETF, attracting the attention of new investors. But he warned of high leverage levels among millennial and Gen Z investors, hinting at a coming correction. He also sees differences in leverage between institutional investors and retail traders, signaling a potential market correction and “washout” before resuming the uptrend.
Simply put, price discovery is when buyers and sellers determine the value of an asset. That’s why analysts suggest Bitcoin is in the early stages of discovery as it becomes widely accessible to U.S. investors through ETFs.
Watch out for the world’s best records
Despite a short-term correction looming, Bitcoin is on the rise globally, hitting record highs against a variety of global currencies this week. It surged 16% from its previous high against the Japanese yen, and broke all-time highs against the Chinese yuan, Russian ruble, Swedish krona, and New Zealand dollar.
Experts predict more record highs this year as Bitcoin is rapidly approaching previous highs in major currencies such as the euro, British pound, Canadian dollar and Australian dollar. This comes after the U.S. dollar index, which measures the dollar’s strength against other currencies, has rebounded strongly in recent months.