Galaxy Digital Tumbles 5.4% Amid Sector-Wide Selloff Ranking 493rd in $250M Trading Volume as Put Options Surge

Galaxy Digital (GLXY) fell 5.40% on August 1 to $27.04, with a trading volume of $250 million ranking it 493rd in market activity. The decline broke below the 50-day moving average of $22.06, signaling technical weakness amid sector-wide selloffs in crypto-linked capital markets stocks.

Options activity surged to 8.4 million shares, dominated by put options expiring on August 8. Analysts highlighted mixed earnings forecasts and regulatory scrutiny as key risks. Despite a 3,952.9% revenue guidance increase to $2.18 billion, Q2 earnings estimates remain volatile at 14 cents/share. The SEC’s focus on digital asset custody and macroeconomic pressures are seen as overhangs for the sector.

Technical indicators show the stock trading below its 200-day moving average (data unavailable) with a 30-day moving average at $23.57. A breakdown below $25.50 could trigger exponential gains in put options, while the sector’s -0.75 correlation with the Nasdaq 100 underscores its high-beta exposure. Implied volatility remains historically elevated at 105.65%-123.21%, with a put/call ratio of 2.8:1 reflecting extreme bearish sentiment.

Backtest analysis of GLXY ETF performance reveals a 52.94% 3-day rebound rate after -5% intraday declines, rising to 76.47% over 10 days and 88.24% in 30 days. The maximum return of 50.79% occurred on day 45, suggesting potential for sharp recoveries following sharp sell-offs. Historical data indicates the ETF often rebounds short-term after severe drops.