Bitcoin's Price May Have Bottomed. One Reason Is the AI Debasement Trade

Bitcoin has likely reached its bear market bottom, supported by technical indicators like the 50-week moving average and shifting market positioning. Institutional interest from wealth managers and sovereign wealth funds is replacing the "fast money" of macro hedge funds, creating a more resilient ownership base. The long-term thesis for Bitcoin remains anchored in the persistent debasement of the U.S. dollar, a trend exacerbated by massive credit expansion and government spending. While the AI build-out introduces potential volatility, it simultaneously reinforces the need for a censorship-resistant, fixed-supply asset. As early holders reduce their selling pressure, the current environment offers a favorable risk-adjusted entry point for investors who anticipate long-term appreciation. Alex Thorn, Head of Firmwide Research at Galaxy, provides this analysis, emphasizing that Bitcoin’s role as an exit valve from the traditional financial system is more relevant than ever.