Galaxy Digital Plummets 4.27% Amid Sector Turbulence: What's Fueling the Selloff?

Summary
• Galaxy Digital (GLXY) trades at $26.89, down 4.27% from its previous close of $28.09
• Intraday range spans $26.46 to $28.1999, reflecting sharp volatility
• Options chain shows heightened activity in August 15th expiration contracts

Galaxy Digital’s sharp intraday decline has ignited market speculation, with the stock trading near its session low. The move coincides with a broader selloff in internet infrastructure stocks, though GLXY’s drop outpaces even sector leaders. Technical indicators and options activity suggest a bearish shift, while sector news on broadband regulation and ISP monopolies adds context to the sell-off.

Regulatory Uncertainty and Sector-Wide Pressures Drive GLXY's Sharp Decline
Galaxy Digital’s 4.27% intraday drop aligns with sector-wide selling in internet services and infrastructure, driven by regulatory uncertainty around net neutrality and ISP monopolies. While GLXY lacks company-specific news, its positioning in a sector grappling with policy headwinds and competitive pressures has amplified its volatility. The stock’s decline reflects investor caution amid macroeconomic and regulatory uncertainties, compounded by recent legal battles over broadband classification and institutional shifts in digital asset adoption.

Internet Services & Infrastructure Sector Mixed as Amazon Holds Steady Amid GLXY's Slide
Amazon (AMZN), the sector leader, trades flat with a -0.2375% intraday move, contrasting GLXY’s sharp decline. This divergence highlights GLXY’s vulnerability to sector-specific risks, such as regulatory scrutiny and competitive dynamics in digital infrastructure. While AMZN’s resilience suggests broader sector stability, GLXY’s drop underscores its exposure to niche market pressures.

Options Playbook: Capitalizing on GLXY's Volatility with Strategic Put and Call Selections
• 30D Moving Average: 25.015 (below current price)
• RSI: 52.6 (neutral)
• MACD: 1.58 (bearish with -0.295 histogram)
• Bollinger Bands: Price near lower band (20.797)

GLXY’s technical profile signals a short-term bearish bias, with key support at 25.015 and resistance at 33.512. The stock’s 52W range (17.4–33.17) and -53.09 PE ratio suggest valuation risks. Two options stand out for strategic positioning:

• GLXY20250815P27 (Put): Strike $27, Expiry 2025-08-15, IV 91.83%, Leverage 17.93%, Delta -0.4816, Theta -0.0146, Gamma 0.1090, Turnover 68,013
- High leverage and moderate delta position this put for gains if GLXY breaks below $27. A 5% downside scenario (ST = $25.58) yields a payoff of $1.42 per contract.

• GLXY20250815C27 (Call): Strike $27, Expiry 2025-08-15, IV 86.78%, Leverage 20.07%, Delta 0.5164, Theta -0.1524, Gamma 0.1154, Turnover 47,987
- High liquidity and gamma make this call responsive to price swings. A 5% upside (ST = $28.28) yields a $1.28 payoff, though theta decay (-0.1524) favors short-term holding.

Bears eye GLXY20250815P27 for downside potential if support breaks, while bulls may consider GLXY20250815C27 for a rebound above $27.50.

Backtest Galaxy Digital Stock Performance
The GLXY ETF has historically shown strong recovery performance following a -4% intraday plunge. The backtest data reveals favorable win rates and returns over various time frames, indicating robust resilience and recovery potential:

Act Now: GLXY's Volatility Presents High-Risk, High-Reward Opportunities
Galaxy Digital’s sharp decline reflects sector-wide regulatory and competitive pressures, with technical indicators and options activity reinforcing a bearish near-term outlook. While the stock remains within its 52W range, key levels at 25.015 and 33.512 will dictate its trajectory. Amazon’s flat performance suggests broader sector stability, but GLXY’s exposure to niche risks demands caution. Investors should monitor the 25.0 support level and consider GLXY20250815P27 for bearish bets if the breakdown accelerates.