A Galaxy Digital executive says the cryptocurrency market is unlikely to experience a V-shaped recovery, and will gradually rise after a period of volatility. Odaily reported that Galaxy Digital’s Global Head of Asset Management and Co-CIO of Digital Assets, Steve Kurz, said the recent downturn in cryptocurrencies appears to be due to liquidity and deleveraging rather than systemic flaws, indicating that the crypto market cycle has matured since 2022, and that much of the forced selling has likely already been absorbed by the market. Stablecoins, tokenization, and the fusion of blockchain with traditional finance are accelerating, positioning cryptocurrencies as financial assets and a core part of the financial system.
The crypto market is unlikely to experience a sharp V-shaped recovery, Galaxy Digital executives say, suggesting volatility will persist before a gradual rise. Kurz’s remarks emphasize liquidity dynamics over structural weaknesses, underscoring a more resilient market framework. As the industry digests the previous downturn, he argues the selloffs were largely absorbed, pointing to a steadier path forward rather than an abrupt rebound.
Looking ahead, the convergence of stablecoins, tokenization, and blockchain with traditional finance is accelerating, positioning crypto as both a financial asset and a component of the broader financial system. This trend reinforces the prospect of a gradual, sustained ascent rather than a rapid V-shaped recovery.
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