(Bloomberg) -- Michael Novogratz, the founder of digital-asset financial services firm Galaxy Digital Holdings Ltd., said Bitcoin is likely to remain stuck in a relatively narrow trading range for at least the current quarter while the adoption of crypto in traditional finance continues. 

“We are in the consolidation phase in crypto. Bitcoin, Ethereum and everything else, Solana will consolidate, what does that mean? It means probably somewhere between $55,000 and $75,000 until the next set of circumstances, the next set of market events bring us higher,” Novogratz said on a conference call after the firm released first-quarter results on Tuesday. 

The crypto market has been stagnant since the historic bull run in the past two quarters driven by the launch of spot US Bitcoin exchange-traded funds as well as the halving, which is considered as a positive catalyst as the Bitcoin code update reduces the supply of new tokens. The original cryptocurrency saw a downward trend after the optimism around the interest rate cuts by the Federal Reserve dimmed over persistently strong economic readings.  

“We had a lot of tailwinds in Q4 and Q1,” Novogratz said.  “I think that is probably where we are certainly for this quarter, maybe next quarter until either A, the Fed starts cutting rates because the economy finally slows or B, we get through the election and I think the election will bring clarity one way or the other to the crypto regulatory landscape.” 

Bitcoin fell around 2.7% to $61,389 on Tuesday. The digital currency has declined about 16% since reaching a record $73,797 on March 14. 

The New York-based company’s results jumped amid the sharp rally in digital assets earlier this year, with first-quarter net income more than tripling to $421.7 million. The Galaxy chief executive officer said the adoption of crypto in traditional finance is in full swing and there is renewed interest in the sector, evident by an increase in activities such as lending.

“People are willing to lend us crypto for a long period of time unsecured, that didn’t happen six months ago and it’s happening now,” Novogratz said. “Counterparties are growing. Engagement around the space is just at a different level than what it was before.” 

Shares of Galaxy Digital rose around 1% to $9.28 as of 10:15 a.m. in New York. The stock is up about 23% so far this year. 

--With assistance from Muyao Shen.

©2024 Bloomberg L.P.