As you know, from time to time, we use other markets as a gauge for how Bitcoin (BTC) will do in the future.
In this case, we wanted to use Galaxy Digital (GLXY). GLXY is the publicly traded stock of Mike Novogratz's crypto hedge fund. The shares trade in Toronto. We have been following developments in GLXY closely. As you can see on the chart, GLXY have back all of its 2019 gains and now sits back where it was nearly a year ago near $1.00. Some think that GLXY is a leading indicator of what will happen with Bitcoin (BTC). In other words, that crowd thinks Bitcoin (BTC) is going to either 6000 or 4000. We respect the logic behind this view.
Our view is slightly different. We believe that the drop in GLXY is a selling climax. People have thrown in the towel on blockchain and crypto investments and took tax losses on positions. The decline in GLXY is occurring right as geopolitical developments are favoring crypto. The Chinese are nationally embracing blockchain, alts are rallying, and the Russians are talking about the demise of the Dollar.
Bottom Line: We think GLXY and Bitcoin (BTC) are a buy near $1 and 8k, respectively. We believe a more significant rally in Bitcoin (BTC) is a 2020 phenomenon, but the GLXY chart gives up hope for near term stabilization. The fact that people are giving up on crypto at the end of 2019 could be very bullish in 2020.
In this case, we wanted to use Galaxy Digital (GLXY). GLXY is the publicly traded stock of Mike Novogratz's crypto hedge fund. The shares trade in Toronto. We have been following developments in GLXY closely. As you can see on the chart, GLXY have back all of its 2019 gains and now sits back where it was nearly a year ago near $1.00. Some think that GLXY is a leading indicator of what will happen with Bitcoin (BTC). In other words, that crowd thinks Bitcoin (BTC) is going to either 6000 or 4000. We respect the logic behind this view.
Our view is slightly different. We believe that the drop in GLXY is a selling climax. People have thrown in the towel on blockchain and crypto investments and took tax losses on positions. The decline in GLXY is occurring right as geopolitical developments are favoring crypto. The Chinese are nationally embracing blockchain, alts are rallying, and the Russians are talking about the demise of the Dollar.
Bottom Line: We think GLXY and Bitcoin (BTC) are a buy near $1 and 8k, respectively. We believe a more significant rally in Bitcoin (BTC) is a 2020 phenomenon, but the GLXY chart gives up hope for near term stabilization. The fact that people are giving up on crypto at the end of 2019 could be very bullish in 2020.
