Galaxy Digital Traders Split on Bitcoin Bottom, Risk-Reward Improves

Galaxy Digital's research head, Alex Thorn, compared Bitcoin to a luxury product called a 'Veblen good,' which becomes more desirable as its price increases. Speaking on the 'Galaxy Brains' podcast, Thorn said that Bitcoin has demonstrated this pattern multiple times.

The trading desk at Galaxy Digital is split on whether the current $63,000-$65,000 range for Bitcoin's price is the bottom of the current cycle or just bear-market noise. According to Thorn, an internal poll across the firm's trading, risk, and research teams was dead even at 50/50.

The desk cited a one-year historical pattern for bottoms in the crypto cycle, better exchange-traded fund (ETF) inflow data after weeks of continuous outflows, and less 'forced-seller' risk associated with Strategy as reasons why the risk-reward is becoming increasingly positive for investors over a 6- to 12-month horizon.

Thorn also pointed to growing institutional interest in Bitcoin, citing conversations around stablecoins, tokenized assets, and trading as more pervasive than ever. He noted that adoption is increasing, with more firms thinking about Bitcoin security for the long haul, not just near-term price action.