Galaxy Research Cuts Bitcoin’s Year-End Target by 35%: Here’s Why
The cryptocurrency market continues to witness dynamic shifts, with Bitcoin (BTC) at the forefront of headlines. Galaxy Research recently revised its year-end projection for Bitcoin, slashing it by 35%—from $185K to $120K. This substantial change has left many wondering about the driving factors behind the new forecast. Let’s explore the details shaping BTC’s near-term outlook.
What’s Behind the Revised Projection?
Alex Thorn, Head of Firmwide Research at Galaxy Research, pointed to multiple challenges that have impacted Bitcoin’s performance. According to the report, the downgrade results from:
- Massive whale distribution, as influential holders strategically sell portions of their BTC holdings.
- A crisis among Bitcoin treasury companies, restricting positive momentum.
- Increased competition from other investment narratives beyond Bitcoin.
Adding to these factors was the significant October 10 crash, which disrupted the market structure. While the short-term challenges seem daunting, Thorn emphasized that the long-term outlook remains optimistic, citing an eventual recovery in Bitcoin liquidity.
Market Correction: BTC’s Recent Performance
Bitcoin recorded a correction to $98.9K on November 4, marking a 22% decrease from its previous peak of $126K in October. Despite this, BTC managed to stay above the psychologically critical $100K level, currently trading at $103.4K as of the latest update.
The Options Market also aligns with Galaxy Research’s predictions. Data revealed that the highest Options volumes are bullish calls targeting a $120K price, followed by $115K and $112K levels. Interestingly, the Put/Call ratio stood at 0.61, indicating a preference for bullish bets as year-end approaches. However, there remains cautious hedging against a potential dip to $80K, reflecting a balanced sentiment within the community.
Experts Weigh In
Renowned crypto analyst Willy Woo remarked that Bitcoin’s liquidity is beginning to recover, signaling a potential upward trajectory in the latter half of November. Similarly, Galaxy founder Mike Novogratz expressed optimism. He speculated that Bitcoin could rally beyond $126K under a new Federal Reserve policy outlook, as he anticipates a more dovish stance under potential new leadership.
Despite the current sell-off driven by long-term holders’ rebalancing, Novogratz noted that this correction is healthy for Bitcoin’s mid-to-long-term market structure.
Looking Forward
While short-term corrections continue to test investor patience, the overall long-term outlook for Bitcoin remains bullish. With its resilience above $100K and optimistic signals from market analysts, BTC still represents promise within the volatile cryptocurrency space.
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Disclaimer
Please note that cryptocurrency trading is a high-risk investment. Readers are encouraged to conduct thorough research before making financial decisions. This article is intended for informational purposes only and should not be taken as investment advice.
