Galaxy Research is advocating for the purchase of bitcoin despite its steep decline from the all-time high achieved last year, citing a reduction in distribution from long-term investors and a technical rebound above an important threshold.
The leading digital currency exchanged hands above $80,000 on Monday, registering a 0.2% decline over a 24-hour window, based on data from The Block’s bitcoin price tracker. Even though the token has bounced back significantly from its June 30 trough, it remains roughly 36% lower than its October 2025 peak near $126,000.
Bitcoin successfully finished five successive weeks above its 50-week moving average leading up to October 18, following a span of 44 straight weeks beneath that metric, stated Alex Thorn, Head of Firmwide Research at Galaxy, in a publication provided to The Block on Monday.
He further noted that bitcoin evaluated its 200-week moving average during the downward movement toward the June low, with the most severe weekly finish ending 4.7% beneath that threshold.
Selling pressure fades
Galaxy highlighted a noticeable decline in coin activity among aging wallet addresses. Based on the organization’s findings, coins residing in wallets untouched for a minimum of five years transferred at a monthly average of 34,000 BTC throughout 2026, dropping from 47,000 BTC in 2025 and 67,000 BTC in 2024.
The study indicates that approximately 1.11 million BTC from this specific cohort shifted ownership starting in October 2024, with exchange-traded funds and corporate reserve entities taking in a significant portion of those coins.
Furthermore, Galaxy asserted that expanding U.S. national debt and government shortfalls bolster bitcoin’s value proposition as a protection against monetary devaluation, pointing out that national liabilities stand at $40.44 trillion alongside credit growth driven by artificial intelligence financing.
Thorn expressed in the text, “We believe the bottom is in, selling pressure has diminished, the debasement case has strengthened, and the crowd has left. Our conclusion is simple: we believe now is an attractive time to buy and hold bitcoin.”
Nevertheless, Thorn warned that Galaxy’s optimistic outlook could face invalidation if bitcoin registers a weekly finish beneath its 50-week moving average benchmark of $76,540 and fails to reclaim that position within a 30-day window.
The document additionally pointed out potential threats stemming from artificial intelligence, such as automated cyber attacks, though Galaxy contended that recent digital asset thefts compromised trading platforms, service providers, hardware, or individuals rather than the foundational Bitcoin network. The enterprise emphasized that artificial intelligence fails to compromise Bitcoin’s SHA-256 cryptographic hashing mechanism or signing architecture.
Concerning potential dangers from quantum computing, Galaxy stated that no device capable of defeating Bitcoin’s cryptographic security is currently operational, while highlighting ongoing development of quantum-resistant enhancements and sector investments dedicated to mitigating that vulnerability.
Originally published at https://www.theblock.co/news/markets/2026-10-26-galaxy-says-bitcoin-bear-market-is-over-now-is-the-time-to-buy-and-hold-431720.
