Billionaire Mike Novogratz Predicts Bitcoin Correction Based on ETF Outflows
Mike Novogratz, the founder and CEO of Galaxy Digital, has provided insight into when Bitcoin (BTC) could experience a significant correction. In a recent CNBC interview, Novogratz stated that if the outflows from spot market Bitcoin exchange-traded funds (ETFs) start exceeding the inflows, Bitcoin’s current upward trajectory could reverse.
ETF Inflows and Bitcoin Price
- Novogratz believes that as long as spot Bitcoin ETFs continue to experience positive inflows, the price of Bitcoin will continue to rise.
- He states that once the inflows turn negative, the first real correction will occur.
- Traders are currently monitoring the net inflows of the nine BTC ETFs to make their trading decisions.
Spot Market BTC ETFs
- Spot market BTC ETFs were approved by the U.S. Securities and Exchange Commission (SEC) in January.
- These ETFs allow traders to gain exposure to Bitcoin without actually purchasing the asset itself.
Predictions for Bitcoin’s Price Floor
- Novogratz predicts that Bitcoin is unlikely to dip below the $50,000 mark again.
- He believes that $50,000 – $55,000 is the new price floor for Bitcoin unless something dramatic occurs.
- The current price of Bitcoin is $70,030 at the time of writing, representing a 1.7% decrease in the last 24 hours.
Hot Take: Be Prepared for a Potential Correction
In light of the current market conditions, Novogratz advises traders to be prepared for a potential correction in Bitcoin’s price. He notes that things are frothy, with high funding rates, which often precede a correction. However, he does not anticipate Bitcoin falling below the $50,000 – $55,000 range unless there is a significant event.
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