Key Takeaways
- •Galaxy Digital’s Alex Thorn lowered his year-end Bitcoin target from $185K to $120K amid tighter liquidity.
- •He says investor focus has temporarily shifted to AI, quantum tech, nuclear energy, and gold.
- •Thorn remains confident in Bitcoin’s long-term growth, calling the current phase a healthy maturation of the market.
Speaking to CNBC, the veteran analyst revealed that he has revised his year-end target for the leading cryptocurrency down to $120,000 from his earlier forecast of $185,000. Thorn attributed the adjustment to tightening market liquidity and growing macroeconomic uncertainty, which he said have cooled the wave of “boundless optimism” that dominated the early months of the year. Despite the lower short-term target, he maintains that Bitcoin’s long-term trajectory remains bullish and structurally healthy.
Investors Shift Focus to New Frontiers
According to Thorn, the recent slowdown in Bitcoin’s momentum is partly due to investors redirecting their attention toward emerging sectors such as artificial intelligence (AI), nuclear energy, quantum computing, and gold. These themes have drawn considerable capital flows this quarter, temporarily diverting attention from digital assets.
He emphasized, however, that Bitcoin has repeatedly faced similar periods of fading enthusiasm throughout its history—only to regain dominance once market cycles evolve. “Interest always comes back to Bitcoin,” Thorn told CNBC, pointing to the asset’s consistent ability to recover after each cooling phase.
A More Mature Market Cycle
Even as he trims near-term expectations, Thorn sees encouraging structural developments in Bitcoin’s ecosystem. He believes that the current market environment represents a transition into a more mature phase, where large holders are gradually distributing coins to a broader base of long-term investors. This process, he said, is laying a stable foundation for the next major rally.
The Galaxy Digital executive also suggested that the ongoing redistribution of Bitcoin supply is creating a healthier market balance—reducing speculative leverage and strengthening overall resilience. In his view, this positions Bitcoin well for sustained growth once macro conditions improve.
Cautious in the Short Term, Confident in the Long Run
While some analysts have begun trimming their own forecasts amid volatility in both crypto and tech stocks, Thorn’s revised target remains well above Bitcoin’s recent trading range, signaling that institutional sentiment is cooling but far from bearish.
As liquidity improves and risk appetite returns, he expects Bitcoin to regain its momentum—though the path upward, he said, is likely to be steadier than in previous parabolic cycles.