Galaxy Digital Lowers Bitcoin Price Target Amid Market Downturn

The cryptocurrency market is under bearish pressure, with Bitcoin (BTC) struggling to regain key support levels.

• Bitcoin has declined nearly 6% over the past week, impacting major cryptocurrencies like Ethereum (ETH), XRP, Binance Coin (BNB), and Solana (SOL), all experiencing double-digit losses.

Galaxy Digital Adjusts Bitcoin Price Target

• Galaxy Digital lowered its year-end Bitcoin price target from $185,000 to $120,000 due to a significant leverage wipeout in the market.
• CryptoQuant notes that Bitcoin dropping below its 365-day moving average near $102,000 might signal further decline.
• Challenges include a stronger dollar and uncertainties around Federal Reserve policy affecting risk appetites.

ETF Flows and Market Sentiment

• There have been significant outflows from US spot BTC ETFs, reversing positive trends seen earlier in 2025.
• Options market volatility has increased, with the $100,000 level acting as a psychological barrier.
• Stabilization of ETF flows could improve market sentiment if no new macroeconomic shocks occur.

On the macroeconomic front, while supportive, the environment is clouded by a government shutdown in Washington. The Federal Reserve's recent cautious stance on interest rate cuts may contribute to maintaining a firm dollar and tight credit conditions.

For a sustainable Bitcoin rally, a reversal in ETF outflows and renewed confidence in risk assets are deemed necessary by CryptoQuant.