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Galaxy Upgrades Bitcoin Outlook Amid Volatility

Coin WorldTuesday, Jan 28, 2025 5:52 am ET

1min read

Galaxy Digital Upgrades Bitcoin Outlook Amid Volatility

Galaxy Digital, a leading digital asset management firm, has upgraded its outlook for Bitcoin, expecting its outperformance to continue despite recent market volatility. The firm's analysts believe that Bitcoin's fundamentals remain strong, and its price could reach new highs in the coming months.

In a recent report, Galaxy Digital highlighted several factors contributing to Bitcoin's resilience. Firstly, the firm noted that Bitcoin's supply is finite, making it a scarce asset. This scarcity, combined with increasing demand, drives up the price. Secondly, Galaxy Digital pointed out that Bitcoin's decentralized nature makes it an attractive store of value, particularly in times of economic uncertainty.

The firm also emphasized the growing institutional interest in Bitcoin. As more large investors allocate a portion of their portfolios to Bitcoin, the cryptocurrency's price is likely to benefit from increased demand. Additionally, Galaxy Digital noted that the ongoing development of Bitcoin's infrastructure, such as Lightning Network and Taproot upgrade, enhances its utility and adoption.

Galaxy Digital's upgrade comes as Bitcoin's price has been volatile in recent weeks. However, the firm remains optimistic about the cryptocurrency's long-term prospects. The analysts expect Bitcoin to continue its outperformance, driven by its strong fundamentals and growing institutional interest.

In other news, Metaplanet, a Japanese investment firm, has announced plans to raise $745.5 million to bolster its Bitcoin portfolio. The firm aims to issue 21 million shares of 0% discount warrants, enabling investors to acquire shares at a predetermined price while offering flexibility for future investments.

Metaplanet's CEO, Simon Gerovich, cited the recent all-time high of Bitcoin and the declining value of the Japanese yen as reasons for the fundraising effort. The firm plans to use the funds to purchase Bitcoin, aiming to grow its holdings to 21,000 BTC by 2026. This strategic move highlights the growing interest in Bitcoin as a hedge against currency risks and a potential store of value.

Meanwhile, Arizona has taken the first step toward state Bitcoin investment with the approval of bill SB1025. The legislation, known as the "Arizona Strategic Bitcoin Reserve Act," allows up to 10% of state public funds to be invested in Bitcoin and other virtual currencies. If passed, Arizona would become the

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