bitcoin ·
Now is the time to accumulate bitcoin, Galaxy says
Galaxy suggests it is time to accumulate bitcoin.
The firm argues that bitcoin's recovery toward its prior high is supported by improving price trends, sustained ETF demand, and increasing U.S. debt levels.
According to Galaxy, June likely marked the cycle low, based on bitcoin recovering above its 50-week moving average and a decrease in speculative exposure.
Alex Thorn, head of firmwide research at Galaxy, stated in a note titled “Why now is the time to add and hold BTC” that “We think the bear market ended in June and that bitcoin is in the accumulation phase that has preceded every prior advance.”
Thorn noted that the bear market probably concluded in June when prices were under $58,000. He indicated that mounting fiscal risks, reduced selling pressure, and better price-chart indicators make the largest cryptocurrency by market capitalization an attractive asset to accumulate.
Bitcoin was trading near $80,000 when the article was written, representing a 38% increase from the June lows under $58,000. However, prices remain approximately 35% below the peak of over $126,000, meaning a 53% gain is needed to reach that high.
Thorn pointed out that five consecutive weekly closes above the 50-week moving average have bolstered his belief that the market bottomed. Furthermore, asset managers' net long exposure via CME bitcoin futures fell 57% from the week of the record high, and major trading firms cut back on ETF holdings, suggesting "The fast money has left, the base stayed, and everything else is priced for perfection."
Galaxy also pointed out that spot bitcoin ETFs acquired 87,000 BTC following the June low, indicating renewed directional demand as arbitrage activity lessened. The firm believes that rising U.S. debt, ongoing deficits, and increasing interest costs strengthen bitcoin’s appeal as a fixed-supply asset.
Galaxy acknowledged risks such as AI-related disruption, broader market declines, and quantum computing. The firm's technical thesis would be challenged if a weekly close below $76,540 was not recovered within one month.
Earlier coverage
Reported by CoinDesk.
