Galaxy Digital Analyzes Bitcoin’s Market Recovery Potential

Galaxy Digital has released a new research report suggesting that the downturn in Bitcoin’s market may be coming to an end, indicating the onset of what could potentially be a new bull market for the cryptocurrency.

Market Dynamics and Investor Sentiment

According to Alex Thorn, who heads research at Galaxy Digital, the significant selling pressure that caused Bitcoin’s decline from its peak in October 2025 is largely behind us. Thorn notes that many investors who weathered the downturn have demonstrated a commitment to holding their positions.

Current Market Position

As of Thursday, Bitcoin’s trading value was approximately $79,800, representing a 35% drop from its all-time high. However, Thorn remains optimistic, projecting a possible return to a minimum price of $125,000, based on current buying and selling trends.

• Investment managers have reduced their net long positions in CME Bitcoin futures by 57% since last year’s peak.
• Conversely, spot Bitcoin exchange-traded funds (ETFs) have accumulated 87,000 BTC since the market’s low in June.

These trends highlight a contrast: while speculative traders have stepped back, other investors continue to accumulate Bitcoin, which may create a more stable market environment.

Technical Analysis and Economic Factors

From a technical perspective, Bitcoin’s price charts exhibit promising signs. The cryptocurrency has risen above its 50-week moving average for the first time after being below it for 44 weeks, a historical marker indicating the conclusion of past bear markets. Furthermore, Thorn emphasizes that escalating U.S. debt and the potential for further currency devaluation could enhance Bitcoin’s appeal due to its limited supply.

Potential Risks and Market Outlook

Despite the positive indicators, Thorn warns of potential risks, stating that a sustained decline below $76,540 could jeopardize the recovery trajectory. Nevertheless, he points out that Bitcoin’s resilience is now bolstered by the commitment of long-term investors, who appear willing to maintain their positions despite the volatile market conditions.

This analysis from Galaxy Digital suggests a cautiously optimistic outlook for Bitcoin as it navigates through the remnants of its bear market, with the potential for substantial growth ahead.