Galaxy Digital Plummets 6.66%: What's Behind the Sudden Downturn?

Summary
• Galaxy Digital (GLXY) trades at $32.035, down 6.66% from its previous close of $34.29
• Intraday range spans $31.1159 to $33.5718, reflecting sharp volatility
• Jefferies’ recent 'Buy' rating and $9B BTC sale announcement contrast with today’s selloff

Galaxy Digital’s 6.66% intraday plunge has ignited speculation about market sentiment shifts. Despite a $9 billion Bitcoin sale and a bullish Jefferies rating, the stock has broken below key support levels. With the 52-week range at $17.40–$35.79 and a dynamic P/E of -63.15, investors are scrambling to decode the catalyst behind this sharp reversal.

Profit-Taking and Market Uncertainty Weigh on GLXY
The selloff follows a $9 billion Bitcoin sale for an investor and a Jefferies 'Buy' rating, yet short-term profit-taking and broader market jitters have overwhelmed optimism. The stock’s 6.66% drop suggests institutional selling pressure amid uncertainty about regulatory clarity for crypto assets. Additionally, the recent $175 million capital raise and aggressive expansion into AI-powered data centers may have triggered valuation skepticism, particularly as the dynamic P/E of -63.15 highlights earnings challenges.

Capital Markets Sector Volatility: GLXY Trails COIN's 4.02% Drop
The Capital Markets sector remains volatile, with Coinbase Global (COIN) down 4.02% as crypto-linked equities face profit-taking. Galaxy Digital’s 6.66% decline outpaces COIN’s drop, reflecting its higher leverage to Bitcoin price swings and regulatory uncertainties. While COIN’s decline stems from broader crypto market corrections, GLXY’s sharper move underscores its exposure to institutional Bitcoin trading and tokenization strategies.

Options Playbook: Navigating GLXY’s Volatility with Gamma-Driven Contracts
• RSI: 90.94 (overbought)
• MACD: 2.22 (bullish), Signal Line: 1.51, Histogram: 0.71
• Bollinger Bands: Upper $36.70, Middle $28.27, Lower $19.85
• 200D MA: Not available
• Support/Resistance: 30D $24.50–$24.73

GLXY’s technicals suggest a bearish reversal, with RSI at overbought levels and MACD diverging from price action. Key support at $30.50 and resistance at $33.57 define the near-term range. The GLXY20251003P30 put option (strike $30, IV 103.21%, leverage 27.82%) and GLXY20251003C30.5 call (strike $30.50, IV 96.87%, leverage 11.63%) stand out for their liquidity and gamma sensitivity. Both contracts offer high leverage (27.82% and 11.63%) and moderate delta (-0.314 and 0.654), ideal for directional bets on a $30–$33.57 range.

GLXY20251003P30:
• Code: GLXY20251003P30
• Type: Put
• Strike: $30
• IV: 103.21% (high volatility)
• Leverage: 27.82% (high gearing)
• Delta: -0.314 (moderate bearish bias)
• Theta: -0.0504 (moderate time decay)
• Gamma: 0.0685 (responsive to price swings)
• Turnover: $23,641 (liquid)
• Payoff at 5% down: $2.28 (max $30 strike)
• Why: High leverage and gamma make this put ideal for a $30 support test.

GLXY20251003C30.5:
• Code: GLXY20251003C30.5
• Type: Call
• Strike: $30.50
• IV: 96.87% (moderate volatility)
• Leverage: 11.63% (moderate gearing)
• Delta: 0.654 (moderate bullish bias)
• Theta: -0.1837 (high time decay)
• Gamma: 0.0758 (responsive to price swings)
• Turnover: $5,125 (liquid)
• Payoff at 5% down: $1.52 (max $30.50 strike)
• Why: Balances leverage and liquidity for a potential rebound above $30.50.

Action: Aggressive bears may consider GLXY20251003P30 if $30.50 breaks, while GLXY20251003C30.5 offers a high-gamma play for a $33.57 retest.

Backtest Galaxy Digital Stock Performance
I attempted to retrieve historical price data for the symbol “GLXY.O”, but the data provider returned an empty result. Galaxy Digital Holdings is typically listed on the Toronto Stock Exchange under the ticker “GLXY.TO” (and sometimes appears on U.S. OTC markets under different symbols). To run the requested backtest, we need to make sure we pull prices from the correct listing.Please let me know which listing you’d like to use:1. GLXY.TO (TSX, Canadian dollars) 2. Another symbol / exchange you prefer (please specify)Once I have the correct ticker, I’ll fetch the price history and continue with the backtest of post-event performance after each ≥ 7 % intraday decline from 2022 to present.

GLXY at Crossroads: Break Below $30.50 or Rebound to $33.57?
Galaxy Digital’s 6.66% drop has created a critical juncture. The stock’s path hinges on whether it breaks below $30.50 support or rebounds above $33.57 resistance. With the Capital Markets sector mixed and COIN down 4.02%, investors should monitor GLXY’s liquidity and options activity for clues. A breakdown below $30.50 could trigger a test of the 52-week low at $17.40, while a rebound above $33.57 might reignite bullish momentum. Act now: Short-term traders should watch for a $30.50 breakdown or a $33.57 retest to position for the next move.