Speaking during an episode of CNBC’s Squawk Box yesterday, Mike Novogratz, CEO of asset management firm Galaxy Digital, said that Bitcoin (BTC) is currently in a consolidation phase as treasury firms are steadily warming up to the idea of adding altcoins to their balance sheets.
Bitcoin is currently trading about 7.4% below its all-time high (ATH) of $124,128, recorded on August 14. While the cryptocurrency has surged 5,2% over the past two weeks, its price action remains range-bound, indicating that it could be in a consolidation phase.
In a recent TV appearance, Novogratz stated that Bitcoin has been trading sideways for the past month, as treasury companies have focused on accumulating major altcoins lately. However, Novogratz added that BTC may see another upswing toward the end of the year. He said:
Bitcoin’s at a consolidation right now. Partly because you’re seeing a lot of these treasury companies in other coins take their shot.
Multiple reasons could be held responsible for companies choosing ETH over BTC to gain exposure to digital assets. For instance, ETH offers far more use-cases compared to Bitcoin, such as facilitating stablecoin transactions, powering decentralized finance (DeFi), and non-fungible tokens (NFTs).
While altcoins enjoy the limelight, it would be prudent to keep monitoring BTC’s trajectory. A breakout from the current consolidation phase will likely lead to a capital rotation from altcoins to BTC. At press time, BTC trades at $115,050, up 0.4% in the past 24 hours.
