Novogratz said in a conference call after New York-based crypto finance company Galaxy Digital announced its Q1 2024 financial results that it is unlikely that Bitcoin or other major cryptocurrencies will surpass the $75,000 level anytime soon. The expert even points out that this consolidation phase of the market may continue until the 3rd quarter of 2024.

So why is the crypto market stuck in this “consolidation phase”? According to Novogratz’s statements, two main factors lie behind this situation: the interest rate policy of the US Federal Reserve (FED) and the US presidential elections to be held in November 2024.

Novogratz states that the market expects the Fed to start reducing interest rates. This situation is associated with the general slowdown of the economy. Interest rate cuts may lead investors to show more interest in cryptocurrencies. However, for now, the Fed continues to increase interest rates to combat inflation. This reduces investors’ interest in cryptocurrencies, which are seen as risky assets.

The crypto market may also be significantly affected by the US presidential elections in November 2024. The outcome of the elections could impact future regulation of cryptocurrencies. Gaining clarity could lead investors to have more confidence in the crypto market and invest in it. The fact that the elections bring clarity in terms of cryptocurrency regulations may give positive momentum to the market.

So what should investors do in this situation? Novogratz warns investors not to panic. He says the market is unlikely to experience a sudden decline in the short term, but prices could move up or down depending on overall economic developments. This situation emphasizes that investors should focus on long-term investment strategies.

Galaxy Digital closed Q1 2024 on a positive note despite the overall stagnation of the crypto market. The company announced that it achieved net income of $422 million and a 50% increase in assets under management. This shows that Galaxy Digital can survive despite the ups and downs in the cryptocurrency market and continues to provide returns to its investors.

The cryptocurrency market is not expected to make a significant jump in the short term. US interest rate policy and the upcoming presidential elections create a wait-and-see atmosphere in the market. However, the positive performance of companies such as Galaxy Digital also indicates that the long-term potential of the cryptocurrency market continues. It is important for investors to focus on long-term investment strategies and follow the developments in the market closely, without panicking during this period.