Despite the market turmoil on October 11, 2025, which triggered over $19 billion in futures liquidations, the cryptocurrency market remains fundamentally strong, according to Alex Thorn, Head of Research at Galaxy Digital.
Long-Term Drivers Remain Intact
Thorn emphasized that the recent downturn, often described as a market “cooling,” does not negate the long-term growth drivers, particularly in sectors linked to artificial intelligence. He noted the substantial participation of major corporations and the U.S. government in financing the space as a stabilizing factor.
Bitcoin as Digital Gold
According to Thorn, Bitcoin maintains its position as “digital gold”, benefiting from increasing distrust in traditional fiscal and monetary policies. This status helps BTC withstand volatility in conventional markets and macroeconomic uncertainty.
Positive Outlook for Altcoins and Tokenization
Thorn also highlighted ongoing developments in tokenization and stablecoins, along with favorable regulatory shifts in the U.S., as key elements supporting the potential recovery of prominent digital assets such as Ethereum and Solana.
Short-Term Vulnerabilities
However, Thorn noted that interest in Digital Asset Treasury (DAT) companies has declined, primarily due to falling stock valuations. This has led to fewer investors purchasing crypto assets independently of price swings, making the market more vulnerable in the short term, despite the recent cleansing period.
Market Phase Insights
Previously, CryptoQuant reported that Bitcoin has entered the late stage of a bullish cycle, indicating that while volatility persists, the underlying fundamentals remain robust.
Overall, Galaxy Digital maintains an optimistic view of the crypto market, stressing that recent sell-offs represent temporary adjustments rather than a structural weakness.
