Galaxy says bitcoin recovery signals cycle low, time to accumulate

Bitcoin recovered above its 50-week moving average in June, marking a potential cycle low according to Galaxy Digital. The firm notes reduced speculative exposure and rising government debt strengthen the investment case, while sustained weakness below $76,540 would challenge the technical outlook. Bitcoin traded around $80,000, up 38% from June lows under $58,000, but remains down approximately 35% from its record high above $126,000. Galaxy head of research Alex Thorn stated the bear market likely ended in June, with five consecutive weekly closes above the 50-week average strengthening the conviction that the market had bottomed. Asset managers' net long exposure through CME bitcoin futures had fallen 57% from the record high week, and several major trading firms reduced ETF holdings, signaling fast money has left the market. Spot bitcoin ETFs added 87,000 BTC following the June low, suggesting renewed directional demand. The firm sees rising U.S. debt and persistent deficits as factors strengthening bitcoin's appeal as a fixed-supply asset.