Michael Novogratz: Bitcoin will collapse immediately after reaching the maximum

Michael Novogratz, CEO of Galaxy Digital Holdings Ltd. has warned cryptocurrency holders about the upcoming drop in the value of bitcoin BTC $62,665.25 Bitcoin -0.33% Market capitalization $1.24 trillion VOL. 24 hours $1.31 billion amid its current growth.

In an interview with Bloomberg TV, Novogratz spoke in detail about his expectations for the movement of the crypto industry’s flagship. He predicted that, despite the impressive growth of the digital currency in 2024, a significant rise to «new, unprecedented heights» will be preceded by a correction.

«I wouldn’t be surprised to see a correction and some consolidation,» Novogratz said. — «If it [BTC] corrects, it could correct to the mid-$ 50,000s before soaring to a new high.»

Novogratz also touched on the issue of market leverage, comparing the current investment landscape to what it was during the bull market in 2021.

According to statistics provided by Kaiko, bitcoin spot trading volume on centralized exchanges has reached the highest level of activity since the FTX crash, reaching an impressive $ 34.05 billion.

Cryptocurrency exchange Binance leads the way with a trading volume of $ 17.09 billion. It is followed by Bybit and Coinbase with trading volumes of $ 3.5 billion and $ 2.98 billion, respectively. Crypto platforms OKX and Kraken also made a significant contribution, showing volumes of $ 2.92 billion and $ 1.05 billion.

Earlier, analysts noted that if the current bitcoin cycle correlates with the previous ones, the price of the main cryptocurrency could soon fall by 47%. This will cause a retest of the $ 32,000 area.