Galaxy Digital of Mike Novogratz has increased its BTC buy by acquiring 400 more BTC. They have acquired BTC equivalent to $23.40 million. This acquisition occurred while Bitcoin prices have retraced to $58,559, and investors have begun to feel positive once again.
The strategic decision taken by the company shows that the company is increasingly convinced of the future of cryptocurrency even when the market is volatile.
Galaxy Digital Boosts Bitcoin Holdings Amid Market Dip
The recent purchase of 3,150 BTC, worth around $184.56 million, has taken Galaxy Digital’s total BTC to 3,150 BTC. This purchase was made through Binance, indicating that the market is employing a buy-the-dip technique since the price of Bitcoin fell below $59,000.
Galaxy Digital might have strategically made this move. To take advantage of the volatility of the market to gain a better position in the crypto market.
Furthermore, this big influx has put more buying pressure on Bitcoin and this is a good sign for investors. This deal is in line with Galaxy Digital’s business plan of expanding its exposure to crypto assets. This has proved to be valuable as the market oscillates.
The firm’s actions signal the company’s commitment to the value of Bitcoin in the future.
Bitcoin Prices May Rise Following Galaxy Acquisition
The market has given a favorable response to the acquisition by Galaxy Digital Holdings but at the same time exercising caution. Although Bitcoin fell 2.56% in the last 24 hours, the acquisition has led to rumors that the prices of Bitcoin might be set to rise again.
The rising Bitcoin shorts and the mild decline in the futures open interest level suggest bearish sentiment but the market is still on the lookout for opportunities for further upward moves.
Blockchain analyst Ali Martinez insisted that the struggle is still in the initialization stage of the post-halving cycle, so more gains are possible.
Martinez pointed out that Bitcoin has usually hit its market top 530 days after a halving event, so a new all-time high remains possible. With this in mind, and given Galaxy Digital’s recent behavior, the long-term perspective for Bitcoin seems rather favorable.
Fed Rate Cut Expectations May Boost Bitcoin Prices
Galaxy Digital’s acquisition comes amid other market conditions, such as the expected reduction in interest rates by the Federal Reserve (Fed).
The CME FedWatch Tool predicts a 71.5% chance of a 25 basis point cut, which is likely to help support digital currencies. The expectation of such a cut and Galaxy Digital’s positive positioning on Bitcoin may cause a boost in buying pressure in the following few weeks.
Also, the average daily turnover of derivatives has increased by 40% to $40.04 billion, indicating the high level of speculative trades in the market. This can only mean that traders are taking positions in preparation for a major price action.
These factors could combine to set the stage for a Bitcoin price rebound, which would buttress the bullish view engendered by Galaxy Digital’s recent acquisition.
