Exciting times lie ahead as Bitcoin races towards its previous all-time high, but industry experts are cautioning about a potential correction before the digital asset can continue its upward trajectory.
Bitcoin’s Price Discovery Phase
Mike Novogratz, the visionary founder of Galaxy Digital, recently shared his insights on Bloomberg TV, suggesting that despite crossing the $60,000 mark this week, Bitcoin is still in a phase of discovery when it comes to its true value.
Novogratz hinted at a possible correction that could see Bitcoin dip into the mid-$50,000s before embarking on another surge towards a new high. The recent price surge, triggered by the approval of spot BTC ETFs in the U.S., has propelled Bitcoin into an exciting phase of “price discovery”, attracting a wave of new investors.
Even with short-term fluctuations, Novogratz remains optimistic about Bitcoin’s long-term potential and sees a potential influx of wealth from baby boomers into the cryptocurrency market as a game-changer.
Exercise Caution Amidst Bullish Trends
As Bitcoin hovers around $61,500, the recent rally has drawn comparisons to the previous peak of almost $69,000 in November 2021. While some believe this could signal the start of a new bull market, industry experts like Daniel Yan, co-founder of Matrixport, are urging caution.
Yan warns against overly optimistic sentiments, highlighting the impact of market euphoria and unpredictable macroeconomic factors on volatility. He predicts a potential retracement of around 15% by the end of April.
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