Galaxy Says Bitcoin’s Current Price Offers an Opportunity to Accumulate

Galaxy believes Bitcoin could be preparing for another recovery toward its previous all-time high, citing improving technical indicators, continued demand for spot exchange-traded funds (ETFs), and growing U.S. fiscal pressures.

Bitcoin’s rally has lost momentum in recent weeks, with the cryptocurrency trading near $80,000. The slowdown has prompted some bearish analysts to warn that another sharp decline could be approaching.

Galaxy, however, remains optimistic about Bitcoin’s longer-term outlook and believes the current market conditions present an opportunity for investors to accumulate BTC.

“We think the bear market ended in June and that bitcoin is in the accumulation phase that has preceded every prior advance,” Alex Thorn, Galaxy’s head of firmwide research, wrote in a report titled “Why now is the time to add and hold BTC.”

Galaxy Digital, a U.S.-based financial services and infrastructure company founded in 2018 by billionaire Mike Novogratz, is headquartered in New York City and trades on Nasdaq under the ticker GLXY.

Thorn believes Bitcoin’s bear market likely ended in June, when prices fell below $58,000. He pointed to improving chart patterns, easing selling pressure, and growing U.S. fiscal risks as factors that make the leading cryptocurrency attractive at current levels.

He also argued that Bitcoin has entered an accumulation period similar to those that preceded previous market advances.

Bitcoin Technical Signals Point to a Potential Recovery

Bitcoin was trading around $80,000 when the report was published, approximately 38% above its June lows below $58,000. However, the cryptocurrency remained about 35% below its record high of more than $126,000. Reaching that peak again would require a gain of roughly 53%.

Thorn highlighted Bitcoin’s recovery above its 50-week moving average after spending 44 weeks below that indicator. The cryptocurrency has since recorded five consecutive weekly closes above the level, strengthening his view that the market may have established a bottom.

Market positioning also supports Galaxy’s outlook. Net long exposure among asset managers using CME Bitcoin futures had declined 57% from the week Bitcoin reached its record high. Several major trading firms also significantly reduced their spot Bitcoin ETF holdings.

Thorn believes these changes indicate that short-term speculative investors have largely exited the market, potentially leaving a more stable investor base.

“The fast money has left, the base stayed, and everything else is priced for perfection,” Thorn said.

Bitcoin ETFs Continue to Attract Buyers

Despite the market slowdown, some investors have continued purchasing Bitcoin during price declines.

Galaxy reported that spot Bitcoin ETFs accumulated approximately 87,000 BTC following the June low. The firm sees these purchases as evidence of renewed directional demand, particularly as arbitrage-driven activity has declined.

Beyond technical factors and ETF flows, Galaxy believes the United States’ growing debt burden, persistent budget deficits, and rising interest expenses could strengthen Bitcoin’s appeal as a scarce digital asset with a fixed supply.

Thorn also noted that investor enthusiasm for stablecoins and tokenization, alongside waning attention toward Bitcoin, resembles sentiment patterns observed near previous market bottoms.

Galaxy Highlights Risks to Its Bitcoin Outlook

Despite its positive assessment, Galaxy acknowledged several factors that could undermine a recovery, including a broader market downturn, disruption from artificial intelligence, and potential threats from quantum computing.

The firm identified a weekly close below $76,540 as an important technical warning level. If Bitcoin falls below that threshold and fails to reclaim it within a month, Galaxy’s bullish market-bottom thesis would face a significant challenge.

Nevertheless, the firm believes improving price signals, sustained ETF accumulation, and mounting fiscal concerns create favorable conditions for Bitcoin to recover toward its previous all-time high.

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