Galaxy Digital: The Crypto Bull Cycle Continues

In recent days, following the sharp sell-offs in the crypto market, recovery signals are gaining strength once again. Alex Thorn, Head of Research at Galaxy Digital, emphasized in his evaluations that the structural bull trend in the crypto market continues. Thorn stated that the crypto bull cycle has not ended and that many strong dynamics will support a new rise.

One of the primary factors behind the rise is investments in artificial intelligence (AI). Thorn explained that capital expenditures in the AI field are part of a new investment cycle driven by large technology companies and government policies. These new investment processes encompass a wide ecosystem, from hardware manufacturers to data centers, intersecting with crypto.

Another significant supporter is stablecoins. Thorn noted that stablecoins strengthen on-chain payment infrastructures, providing liquidity to the ecosystem. Additionally, he highlighted the transition of real assets to blockchain (tokenization) processes from pilot phases to actual implementations. These two developments will increase demand in the blockchain space, thereby enhancing interest in core assets like Bitcoin, Ethereum, and Solana.

Moreover, Thorn stated that the decline on October 10 was due to a chain reaction of liquidations resulting from high-leverage trades clashing with low trading volumes. Although this resulted in liquidations around the level of 19 billion dollars, it does not mean the end of the crypto bull cycle. In the short term, liquidity is weak and volatility is high, but in the medium term, Bitcoin, Ethereum, and Solana may enter a rising trend again.

In conclusion, despite the current fluctuations, it is possible to say that the crypto market remains structurally strong. With the influence of three major dynamics, a new rise seems inevitable. Investors should continue to monitor especially AI investments, stablecoins, and tokenization processes.