Galaxy Research Signals Bitcoin Buying Opportunity as Long-Term Selling Pressure Declines

What to Know

Galaxy Research has identified Bitcoin as a potential buying opportunity, citing reduced selling pressure and improving technical conditions despite substantial losses. According to research head Alex Thorn, recent market developments suggest the cryptocurrency may have established a lasting bottom. Bitcoin traded above $80,000 on Monday, down 0.2% daily and approximately 36% below its October 2025 record of $126,000.

Bitcoin Reclaims Important Technical Level

Bitcoin closed above its 50-week moving average for five consecutive weeks through October 18, following 44 weeks below that benchmark. Thorn also noted that Bitcoin tested its 200-week moving average during June’s decline, with its weakest weekly close falling 4.7% below. Galaxy linked this recovery to reduced selling among established holders, whose wallet activity has slowed considerably during 2026.

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Bitcoin untouched for at least five years moved at an average monthly rate of 34,000 BTC this year. This compares with 47,000 BTC during 2025 and 67,000 BTC during 2024, indicating declining movement among older holdings. Since October 2024, approximately 1.11 million BTC from these wallets has moved, with ETFs and corporate treasuries absorbing substantial supply.

US Debt Strengthens Galaxy’s Bitcoin Investment Case

Galaxy also cited mounting federal debt and currency debasement concerns as supporting Bitcoin’s longer-term investment appeal. US government debt reached $40.44 trillion, while borrowing linked to artificial intelligence investments contributed to broader credit expansion.

Thorn argued that diminished selling and improving conditions support buying and holding Bitcoin despite its distance from previous highs.Still, Galaxy warned that a weekly close below $76,540 could undermine its outlook without recovery within one month.

Galaxy Examines AI and Quantum Computing Risks

The report also addressed security concerns involving artificial intelligence and quantum computing, including risks to cryptocurrency infrastructure and users. Galaxy noted that recent thefts targeted exchanges, vendors, devices, and individuals rather than Bitcoin’s underlying protocol. It maintained that artificial intelligence does not weaken Bitcoin’s SHA-256 hashing algorithm or signature system.

Regarding quantum computing, Galaxy reported that no existing machine can break Bitcoin’s cryptography, while researchers develop protective upgrades. Galaxy’s buying case rests on reduced selling, recovered technical levels, and stronger demand for alternatives to depreciating currencies.