- Bitcoin will see a correction before hitting a new record, Mike Novogratz told Bloomberg TV.
- The token could fall to around $50,000 before rising further this year.
- The market is overleveraged as investors chase the top, but bitcoin spot ETFs offer long-term advantages.
As bitcoin shoots towards its all-time high, a correction is likely before the token can stabilize at higher levels, said Galaxy Digital CEO Mike Novogratz. Bloomberg TV.
โI wouldn't be surprised to see some correction and some consolidation, but I'm very reluctant to hit a high in bitcoin because I really think this is price discovery,โ said the billionaire cryptocurrency enthusiast.
A correction would see it fall to around $50,000, before reaching a new high, Novogratz added.
This week, the leading cryptocurrency jumped 20% to surpass the $60,000 mark, as spot bitcoin ETFs continue to attract new inflows. The newly approved funds, the first of their kind in the United States, have brought bitcoin into a "price discovery" phase.
"So we're seeing, you know, a step function in new bitcoin owners, which is driving, I would say, a frenzy across the entire crypto ecosystem," he said. But with that, the market has become too frothy,
ETFs have also attracted more retail investors, who operate with an unsustainable amount of leverage. Many of those chasing the top, especially millennials and Gen Z marketers, could lose out.
But in the long term, the baby boomers' wealth in these funds will drive bitcoin much higher, with the token surpassing its 2021 high of around $69,000.
Given that this retiring cohort represents about $85 trillion in wealth, Novogratz said, a small shift of 1% to 3% of boomers' investments in bitcoin could provide a huge tailwind.
"3% of that is two and a half trillion. The total market capitalization of bitcoin is only a little over 1.2 trillion," he said.
