In a recent conference call on May 14, Michael Novogratz, the CEO of Galaxy Digital, expressed pessimism about the short-term future of Solana, Ethereum, and Bitcoin, despite the increasing adoption from conventional investors. Novogratz predicted that Bitcoin’s price would remain relatively flat this quarter. This prediction comes after last week’s corrections that caused Bitcoin’s price to drop below $61,000.
Despite the recent decline, there is still optimism in the crypto market. The increasing liquidations caused by the short-term price volatility of Bitcoin, altcoins, and memecoins have fueled this optimism. However, Novogratz believes that there may not be a significant increase beyond the all-time high this quarter. He attributes this to the consolidation phase following the introduction of spot Bitcoin ETFs.
According to Novogratz, the market experienced a positive surge in Q1 2024 after the approval of spot Bitcoin ETFs on January 11 and the momentum of the BTC halving. The price of Bitcoin reached a peak of around $73,000 before the recent declines. The current state of the market is a result of both sector circumstances and macroeconomic considerations.
One of the factors contributing to the decline in the decentralized finance (DeFi) figures is the decrease in on-chain activity and trading volumes in top assets. However, Novogratz and other optimistic traders believe that digital asset prices will continue to rise once a new wave of favorable market conditions arrives.
In other crypto news today, the price of Solana (SOL) is at a crucial juncture, with bulls and bears preparing for a decisive battle.