 ▲ Galaxy Digital CEO Mike Novogratz, Bitcoin (BTC) / ChatGPT-generated image |
As the cryptocurrency market sinks into extreme fear, Galaxy Digital CEO Mike Novogratz said the current downturn has entered a bottoming phase, expressing optimism that structural catalysts for a rebound are approaching.
According to crypto-focused media outlet The Daily Hodl on February 6 (local time), Novogratz said in a recent Bloomberg interview and earnings conference call that Bitcoin (BTC) is very close to the bottom of this downturn cycle. He noted that excessive leverage in the market has largely been flushed out and that the intense pessimism felt by investors could instead serve as the foundation for a new upward trend. He predicted that Bitcoin would soon stabilize by forming a new price range between $70,000 and $100,000.
Evaluating the current market environment, Novogratz remarked that Bitcoin should not have been moving this way and that something had gone wrong, pointing to an unusual disconnect between macroeconomic conditions and Bitcoin’s price. Despite an environment favorable to Bitcoin—such as gold hitting record highs, the Nasdaq rising, and interest rates declining—the price plunged. He attributed this decoupling to short-term supply-demand imbalances and profit-taking by long-term holders, while emphasizing that Bitcoin will ultimately reclaim its status as digital gold.
Novogratz also addressed market claims regarding a reported $9 billion Bitcoin sell-off and fears surrounding quantum computing. He directly rebutted rumors that the recent large-scale selling was driven by panic over quantum computing, stating it was simply an institutional portfolio rebalancing. In his view, the risk of quantum computers breaking Bitcoin’s cryptographic system remains decades away, and the Bitcoin community has ample technical capacity to respond.
As key catalysts for a future Bitcoin rebound, Novogratz cited the U.S. crypto market structure legislation known as the CLARITY Act and the pro-crypto policies of the Donald Trump administration. He projected that once regulatory uncertainty is resolved and institutional infrastructure is put in place, inflows from institutional investors will accelerate again. He added that the appointment of crypto-friendly figures to key positions at agencies such as the Treasury Department and the Securities and Exchange Commission would underpin long-term market confidence.
Galaxy Digital reported a quarterly loss of $557 million, but Novogratz emphasized that the company’s underlying fundamentals remain sound. He explained that while identifying the end of a bear market is extremely difficult, signals typically seen during capitulation phases are currently appearing across the market. He advised investors to remain patient, focusing on Bitcoin’s intrinsic value and upcoming policy shifts rather than being swayed by short-term volatility.
Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses incurred based on this information. The content should be interpreted solely for informational purposes.