Galaxy Research Head Dubs Bitcoin a Luxury Product
The head of research at Galaxy Digital, Alex Thorn, describes Bitcoin as a 'Veblen good', a luxury product that becomes more desirable as its price increases. He cites Bitcoin's historical behavior, noting that it has repeatedly demonstrated this trait.
In an internal discussion with Galaxy's trading desk, Thorn pointed out the current $63,000-$65,000 range for Bitcoin and asked whether it represented the bottom of the cycle or just bear-market noise. The team was evenly split on the issue, 50/50, reflecting the uncertainty surrounding the market.
The Galaxy Digital research head highlighted growing institutional interest in stablecoins, tokenization, and crypto trading, with conversations becoming 'as pervasive as they've ever seen'. Thorn also mentioned increasing adoption, better exchange-traded fund inflows after weeks of outflows, and reduced 'forced-seller' risk associated with Strategy's rebuilt cash reserves.