Galaxy Digital founder Michael Novogratz believes Bitcoin is likely to remain within a narrow trading range for the time being.

Michael Novogratz, the founder of Galaxy Digital Holdings, a leading digital-asset financial services firm, anticipates that Bitcoin will maintain its trading range within a relatively narrow band in the current quarter. During a conference call following the release of Galaxy Digital’s first-quarter results, Novogratz expressed his conviction that the crypto market is currently in a consolidation phase. He suggested that Bitcoin, Ethereum, and other prominent cryptocurrencies like Solana are likely to stabilize as the adoption of cryptocurrencies within traditional finance continues to expand.Specifically, Novogratz predicts that Bitcoin will remain within the price range of approximately $55,000 to $75,000 until significant market events or conditions trigger a price surge. The cryptocurrency market has experienced a period of stagnation following the remarkable bull run witnessed in the preceding two quarters. This surge was primarily driven by the launch of spot US Bitcoin exchange-traded funds and the Bitcoin halving event, which reduced the supply of newly minted tokens. However, the surge in optimism surrounding interest rate cuts by the Federal Reserve diminished due to consistently strong economic indicators, leading to a downward trend in Bitcoin’s price.Novogratz highlighted the tailwinds experienced in the fourth quarter of the previous year and the first quarter of the current year. He believes that the current trading range is likely to persist until either A) the Federal Reserve implements interest rate cuts as the economy softens or B) the upcoming election brings clarity to the regulatory landscape surrounding cryptocurrencies.On Tuesday, Bitcoin experienced a 2.7% decline, with its price dropping to $61,389. Since reaching its all-time high of $73,797 on March 14, the cryptocurrency has experienced a 16% decrease.Galaxy Digital, headquartered in New York, reported remarkable first-quarter results, with net income more than tripling to $421.7 million due to the robust performance of digital assets earlier this year. Novogratz emphasized the growing adoption of cryptocurrencies within traditional finance, citing heightened interest and activities such as lending. He also noted that lenders are now willing to offer unsecured loans of cryptocurrencies for extended periods, a significant shift from just six months ago.Following Novogratz’s remarks, shares of Galaxy Digital surged by around 1% to $9.28 as of 10:15 a.m. in New York. The stock has surged by approximately 23% so far this year, reflecting the positive sentiment surrounding the company.Technical analyst Rekt Capital believes that Bitcoin has emerged from the post-halving “danger zone” and entered an accumulation phase, as evidenced by diminishing selling pressure. This assessment is supported by a recent post on X by the popular crypto trader.