HomeCryptoBitcoin will not rise above USD 75,000 until the US election

Bitcoin will not rise above USD 75,000 until the US election

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Crypto heavyweight Galaxy Digital has strong numbers presented for the first quarter. Mainly due to new record results in the mining area and in management fees, net profit climbed by 40 percent to now 422 million US dollars. In addition, assets under management rose by a remarkable 50 percent compared to the previous quarter to now 7.8 billion US dollars. As one of the most important institutional players in the crypto sector, Galaxy launched Invesco, one of the Bitcoin spot ETFs in the US, in January. Just last month, the crypto asset manager expanded its offering with Bitcoin and Ether ETCs in Europe through a partnership with DWS.

During the most recent earnings call, CEO Mike Novogratz also made an exciting forecast: Bitcoin is in a consolidation phase that could last until the US presidential election in November. For the BTC price, this means a corridor of $55,000 to $75,000. “That is the state of affairs […] until either the Fed starts cutting rates because the economy is slowing or we get through the election,” he explained. In general, crypto will remain politicized until a prevailing anti-attitude changes, noted the Galaxy CEO.

Does crypto have to split permanently?

According to Novogratz, the 2024 US election could finally bring clarity to the crypto regulatory landscape after the sector recently became the subject of a political dispute between Democrats and Republicans. This would make life much easier for Galaxy and other crypto companies. “For our industry to thrive, we need bipartisan support,” said the Galaxy CEO. Most recently, US President Biden spoke out against a resolution that wanted to enable banks to take direct crypto custody. The Republican challenger Trump, on the other hand, signaled his pro-crypto tendency.

To the crypto community, it looks like the Democrats are saying “no” to crypto. […] That’s unfair; There are a lot of Democrats who are pro-crypto… but the power right now is held by Elizabeth Warren on the Senate Banking Committee, Gensler, and a few others.

Galaxy CEO Mike Novogratz, Earnings Call Q1 2024

Let Bitcoin and crypto become the plaything of party political interests? A dangerous trend for Novogratz. But the Galaxy CEO is optimistic, saying a future vote in the Senate could be the “first litmus test” of whether some Democrats are now more positive. Especially in an election year, productive cooperation between both parties is difficult, but all the more important for the crypto industry. One thing is certain: if the exodus of successful US companies is to be stopped, regulatory clarity is needed. SEC boss Gary Gensler’s campaign is causing lasting damage to the USA as a crypto location.

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