Also how many crypto currencies are there - my knowledge in this area is weak.
My only holding in this sector is Galaxy (as far as I know). Does it have other components to its business that might carry it through if the crypto sector continued to falter or even collapse.
Thanks.
BTC and other crypto assets are nearing technical levels that resemble past crypto bear market lows (ex: mid-2022, flash crash of March 2020, 2018, 2015). All throughout its history, but most specifically at those bear market low instances, it has been declared dead.
We have observed that those who have been in the crypto space for years are more displeased with BTC's performance right now than ever before, whereas market participants who do not have crypto exposure are now viewing this as finally a good 'entry price' and this is particularly evident with Blackrock's and other institutional-grade ETFs.
We are not sure how long this correction lasts, but a few things that are interesting if this is similar to past 'crypto bear markets': a) this time there are HNW individuals and institutions continuing to buy through ETFs, b) the market is near an all-time high and investors can rebalance from stocks at highs into BTC (previous cycles occurred when the entire stock market was in a bear market), c) there is a high degree of price correlation to software stocks since the end of last year, which leads us to believe a bounce in software names can support a bounce in crypto.
There are many cryptocurrencies (around 19,000), but most have no utility or real worth.
GLXY has an AI data center business which is expected to begin ramping up this year and going forward, which we feel can help support its valuation in the event of crypto prices fluctuating.