galaxydigital

After four years of disputes, the fierce legal battle between crypto giants BitGo and Galaxy Digital is back in the Delaware court, with a stake this time of no less than $100 million!
🔍 Crisis details and roots of the dispute:
🤝 The historic deal: In May 2021, the two companies agreed on a massive merger valued at $1.2 billion.

Bitcoin has staged an impressive recovery in recent days, reclaiming the $64,000 level and reigniting optimism across the cryptocurrency market. Most major altcoins have also posted strong gains, while the overall crypto market capitalization has started recovering from recent sell-offs.
However, not all analysts believe the worst is over. A new report from Galaxy Research suggests that the current bear cycle may not have fully played out and that Bitcoin could still face a significant downside move.
Galaxy Digital Says the Market Bottom May Not Be In
Alex Thorn, Head of Research at Galaxy Digital, recently published a study based on historical Bitcoin cycles, on-chain data, and long-term market trends.
According to the report, the current market structure still resembles previous bear-market phases, and several key indicators have yet to signal a definitive bottom.
Thorn argues that Bitcoin’s traditional four-year cycle remains intact, although it appears to be becoming more compressed as market dynamics evolve.
This shift, he says, may be causing investors to assume too early that the correction has already run its course.
Historical Cycles Point to Deeper Corrections
One of the report’s central arguments is the comparison with previous Bitcoin bear markets.
Historically, major Bitcoin bottoms have typically formed 12 to 13 months after a market peak. The current decline, by comparison, has lasted only around eight months.
If history repeats itself, the market could still face several more months of heightened volatility.
Another key factor is the depth of the correction. Bitcoin has so far declined slightly more than 50% from its peak. In previous cycles, however, drawdowns frequently approached 68% before the market eventually stabilized.
According to Thorn, several classic capitulation signals that often accompany major bottoms have not yet appeared.
A $30,000 Bitcoin Scenario Remains Possible
Galaxy Digital’s report outlines several possible scenarios for Bitcoin’s next move.
The base-case outlook places a potential market bottom between $40,000 and $46,000. A milder correction could see Bitcoin stabilize near $51,000.
However, the most bearish scenario suggests that BTC could fall into the $30,000–$37,000 range before a sustainable recovery begins.
The analysts emphasize that these projections are based primarily on historical data and do not account for external influences such as regulatory developments, geopolitical events, or unexpected macroeconomic shocks.
Investor Panic Remains a Key Risk
Thorn also warned that a sharper decline could trigger another wave of panic selling.
If a large number of investors begin exiting positions at a loss, it could further reduce the market’s average cost basis and intensify downward pressure.
Historically, these types of capitulation events have often marked the final stage of major Bitcoin bear markets.
The Market Is Recovering for Now
Despite the cautious outlook, short-term momentum remains positive.
At the time of writing, Bitcoin is trading around $63,800 after reaching an intraday high of approximately $64,334. Meanwhile, the total cryptocurrency market capitalization has climbed roughly 1.4% to $2.18 trillion.
The big question now is whether this recovery marks the beginning of a new bullish trend or simply a temporary rebound within a broader correction.
Galaxy Digital’s analysis serves as a reminder that, despite the recent optimism, the possibility of significantly lower Bitcoin prices cannot yet be ruled out. If historical market cycles continue to play out as they have in the past, investors could face several more months of turbulence before a true bottom is established.
#bitcoin #BTC #crypto #cryptocurrency #GalaxyDigital
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The information and opinions presented in this article are for informational and educational purposes only and should not be considered financial or investment advice. Nothing on this page constitutes a recommendation to buy or sell any assets. Cryptocurrency investments are inherently risky and may result in financial loss. Always do your own research before making any investment decisions.