Galaxy Digital "Year-end Bitcoin target cut to $120,000..." Selling pressure · AI investment expansion impact

As Bitcoin slid below the $100,000 level, Galaxy Digital (Galaxy Digital) lowered its year-end Bitcoin (BTC) target this year from $185,000 to $120,000. The firm cited entry into an institution-led 'maturity era', weakened liquidity, whale selling, and capital flows into AI and the gold market as the main reasons.

On the 5th (local time), The Block reported that Galaxy Digital said in its report, "Bitcoin's long-term fundamentals remain intact, but this year saw a period in which institution-led absorption, retail investor departures, and large-scale whale selling coincided." It added, "If Bitcoin maintains the $100,000 support level, the roughly three-year-long uptrend would continue, but the future pace of gains will slow."

This adjustment was one of the largest drops so far this year. On the 4th, Bitcoin's price fell from $107,000 to below $99,000, liquidating about $1.3 billion in leveraged positions. As of the morning of the 5th, Bitcoin was trading around $103,400.

Galaxy Digital pointed out that long-term holders sold roughly 470,000 BTC (about $50 billion) to meet institutional demand, saying, "This shows the institutionalization of Bitcoin supply, but at the same time it is acting as a factor that forms major resistance zones."

The report also cited capital flows into the AI industry and the gold market as reasons for the slowdown in Bitcoin's rally this year. The report stated, "The expansion of AI infrastructure and the investment boom related to data centers absorbed massive amounts of capital, and as geopolitical risks expanded, gold reemerged as a safe haven, weakening inflows into Bitcoin."

Meanwhile, Vetle Lunde of K33 Research said, "The Bitcoin market is currently at a turning point after the large-scale liquidations in October," and forecasted, "If risk appetite recovers, selling pressure will ease and conditions for a rebound will be created."