Bitcoin’s 32% rally over the past month seems to be a bit exhausted. BTC was abruptly rejected after its attempt to conquer the $51,000 zone a few days ago. The rejection from the critical resistance level saw the world’s largest cryptocurrency by market cap pause for thought, initiating what some pundits had predicted would be a well-deserved pullback.
For Mike Novogratz, the CEO of cryptocurrency merchant bank Galaxy Digital, bitcoin is likely to stabilize and consolidate for now. He, however, expects a gigantic bullish u-turn for the coin’s price in the fourth quarter of 2021.
Bitcoin Gearing Up For A Minor Consolidation Phase
Bitcoin has seen some profit-taking shortly after hitting $50k. The cryptocurrency is trading around $48,980.64 at the time of publication and is up roughly 2.29% over the past 24 hours.
Speaking during an interview with CNBC’s Squawk Box, Novogratz said he believes the “prices will probably stabilize here a little bit and consolidate, they won’t keep going up forever.”
But as bitcoin lingers below $50,000, the former Fortress hedge fund manager sees signs of a larger breakout in Q4.
Why The Raging Bull Run Will Resume In Q4
He noted that these two retail giants had recently listed job vacancies looking for crypto engineers and heads of crypto projects. Novogratz interpreted this to mean that these companies are determined to be a part of the crypto movement.
Additionally, Visa recently announced the purchase of a CryptoPunk NFT for 49.5 ETH (or almost $150,000 at the time of purchase on August 18), pretty much hinting that digital assets will be a big part of the company’s business.
In this regard, the Goldman Sachs alum thinks a lot of the financial infrastructure will be rebuilt on a blockchain basis.
Novogratz also reminded the CNBC host of the sweeping bipartisan infrastructure bill that proposed heavily taxing crypto. Some United States senators had put forward an amendment that would stifle the burgeoning cryptocurrency industry. But earlier this month, the crypto community stood strongly against this provision and made their voices heard by their leaders. Fortunately, the amendment was tossed out. And within that weekend, crypto became an industry in Washington’s eyes.
All these factors considered, Novogratz believes bitcoin and other cryptocurrencies will resume a parabolic surge in Q4. He expects the S&P 500 to have a good quarter, and so will bitcoin.