Bitcoin Correction: Galaxy CEO Predicts Dip to $55,000

Market Correction Incoming

Despite Bitcoin’s recent surge to over $64,000, Galaxy Digital CEO Michael Novogratz warns of a possible correction. He believes Bitcoin could drop to the mid-$50,000 range in the short term.

Reasons for the Dip

Novogratz cites concerns about high leverage in the market, especially among younger investors. He notes that aggressive trading by this demographic could lead to significant corrections.

Impact of Leverage

Data shows that recent market volatility has resulted in nearly $300 million in liquidations, affecting almost 100,000 traders. This highlights the risks of high-leverage trading.

Institutional vs. Retail Leverage

Novogratz observes that while institutional investors have reduced their leverage, retail traders continue to engage in high-risk trading through offshore platforms.

Long-Term Outlook

Despite the potential correction, Novogratz remains bullish on Bitcoin’s long-term trajectory. He believes the overall trend is positive due to growing institutional and individual interest in BTC.

Newbie Whales Profiting

On-chain data shows that “newbie whales” (Bitcoin holders who acquired their coins within the past 155 days) are currently holding an all-time high amount of unrealized profit.