Galaxy Digital Team Divided on Bitcoin Price Bottom
A recent conversation between Galaxy Digital's Alex Thorn and Beimnet Abebe, Head of Credit Trading at Galaxy, shed light on the current state of Bitcoin (BTC) and its market dynamics. According to Thorn, Bitcoin behaves like a 'Veblen good,' an economic term for a product that becomes more desirable as its price increases. Thorn pointed out that this phenomenon has been observed multiple times in Bitcoin's history.
The conversation took place within Galaxy's trading desk, where the team was debating whether the current $63,000-$65,000 range is the bottom of the current cycle or just bear-market noise. The internal poll among the firm's trading, risk, and research teams resulted in a 50/50 split on whether this price range represents the bottom.
Thorn cited several factors that support his bullish view, including a roughly one-year historical pattern for bottoms in the crypto cycle, improving ETF inflow data after weeks of continuous outflows, and reduced 'forced-seller' risk associated with MicroStrategy after rebuilding its cash reserves. The increasing institutional engagement and adoption of Bitcoin were also mentioned as supportive factors for its medium-term outlook.