The founder and CEO of Galaxy Digital is predicting when Bitcoin (BTC) could experience a significant correction following a rally that has seen the flagship crypto asset appreciate by over 65% year-to-date.
In a new CNBC interview, Mike Novogratz says that Bitcoin’s current upward trajectory could reverse if the outflows from spot market Bitcoin exchange-traded funds (ETFs) start exceeding the inflows.
“As long as [spot Bitcoin ETFs inflows are] positive, the price is going to keep grinding higher.
Once that becomes negative you will see the first real correction. And so I think right now every trader is watching… you know, add up the nine ETFs and see what the net is.
And as long as there are inflows… now, of course, there are lots of other inflows and outflows in the Bitcoin universe, but right now that’s got the Zeitgeist of what people are making their trading decisions off of.”
Spot market BTC ETFs were approved by the U.S. Securities and Exchange Commission (SEC) in January and offer traders exposure to Bitcoin without having to actually purchase the asset itself.
According to Novogratz, the top crypto asset by market cap is unlikely to dip below the $50,000 mark again.
“Things are frothy, funding rates are high. And so in times like this, you always have to be ready for a correction. I don’t think we go back below $50,000 – $55,000. I think that’s the new floor unless something dramatic happens.”
Bitcoin is trading at $70,030 at time of writing, a 1.7% decrease during the last 24 hours.
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