Founder of Galaxy Digital: Retail traders' leverage is too high, BTC may pull back to $55,000

According to Bloomberg, Galaxy Digital founder Michael Novogratz said that Bitcoin may experience some pullbacks before hitting new highs.

 

Novogratz predicted: "If there are some adjustments at present, I wouldn't be surprised. BTC might pull back to around $55,000 and then hit a new high. Compared with the recent 2021 bull market, large institutional participants have lower leverage in the current cycle, but retail traders have excessive leverage and cited the leverage provided by offshore cryptocurrency trading platforms. I think the current market leverage is too high; it happened after a significant increase in market value. There will be a washout; people can't handle such big leverages. For millennials and generation investors chasing highs, some people will make money while many will get eliminated."

 

In addition, he expects that spot Ethereum ETFs will receive SEC approval sometime this year. Galaxy is working with Invesco to seek to provide Ethereum ETF services.