Sky (SKY) Price Volatility: Galaxy Digital's sUSDS Allocation and Macro Market Selloff
The cryptocurrency market saw a volatile swing in Sky (SKY) over the past 26 hours, with its price fluctuating between a bullish catalyst and a macro-driven selloff. On September 23rd, Galaxy Digital publicly disclosed that it had added $100M of sUSDS to its corporate treasury and purchased an undisclosed amount of SKY tokens as part of a deeper strategic tie-up with Sky Protocol.
This news drove a significant price increase in SKY, with its price rising by around 13.9% in the 24 hours following the announcement. However, this rally was short-lived, as the broader market turned risk-off due to higher US Treasury yields and hot PMI data.
The total crypto market cap fell by around 2.8% over the same period, with Bitcoin (BTC) dominating the decline. BTC liquidations also played a significant role in the price drop, with reports suggesting that $180-$425M+ of long positions were liquidated in about an hour on September 23rd.
The short-term technical analysis (TA) also suggested that traders began leaning against the prior SKY pump, which helped to explain why SKY's own percentage move slightly overshooted the market's. Despite this, some analysts noted that SKY had 'swept lows then reclaimed as uptrend structure holds the 7.3% move,' framing it as a high-beta swing-trading candidate.