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Briefly
- Galaxy plans to launch a $100 million hedge fund in Q1 2026 with the power to take lengthy and quick positions.
- The fund has secured commitments from household places of work, high-net-worth buyers, and establishments, with Galaxy making a seed funding of undisclosed dimension.
- Bitcoin is buying and selling at $88,375, down 3.1% on the day and seven.1% over the previous week, based on CoinGecko information.
Crypto entrepreneur and billionaire Mike Novogratz's agency Galaxy is launching a $100 million hedge fund within the first quarter of this yr that may take each lengthy and quick positions, as Bitcoin tumbles from its October peak and commerce tensions rattle crypto markets.
The fund will make investments as much as 30% of its belongings in crypto tokens, and the rest in monetary providers shares that Galaxy believes might be affected by modifications in digital asset applied sciences and legal guidelines, based on a Monetary Occasions report.
The digital belongings infrastructure firm has acquired $100 million in funding from household places of work, high-net-worth buyers, and a few bigger establishments, the FT reported, although it might launch with extra commitments.
Decrypt has reached out to Galaxy for additional touch upon the seed funding quantity.
Paul Howard, senior director at crypto buying and selling agency Wincent, advised Decrypt the fund’s mixture of tokens and monetary providers shares displays the place alpha is rising, with returns pushed by “bringing monetary providers on-chain and digital belongings into conventional companies.
He added that backing “a smaller handful of crypto tokens with demonstrable success and partnerships,” many tied to real-world use instances like stablecoins or tokenized belongings, presents buyers a extra prudent path than a scattershot method.
The hedge fund factors to a strategic pivot for Galaxy as volatility returns to digital asset markets.
Bitcoin is at the moment buying and selling round $88,375, down 3.1% on the day and seven.1% over the previous week, based on CoinGecko information.
Crypto market wavers
Fund head Joe Armao advised the FT that the "'up solely' section of this cycle is probably coming to an finish," although he stays bullish on Bitcoin and main cryptos like Ethereum (ETH) and Solana (SOL).
"Bitcoin can't be ignored this yr in a backdrop of additional [Federal Reserve interest rate] cuts, assuming fairness markets and gold keep wholesome," he stated.
Bitcoin dropped from $95,000 on Friday after Trump threatened 10% tariffs on eight European international locations opposing U.S. management of Greenland, with measures set to take impact on February 1 and escalate to 25% by June 1.
Europe moved rapidly to sign retaliation, with the European Parliament now contemplating suspending approval of the U.S.-EU commerce deal agreed in July.
On prediction market Myriad, owned by Decrypt's mum or dad firm Dastan, sentiment is popping bearish, with customers now putting a 70% likelihood on Bitcoin's subsequent transfer taking it to $100,000 fairly than $69,000—down from highs of 84% earlier within the week.
Novogratz tweeted Tuesday that Bitcoin's present value is "disappointing as it’s nonetheless being met with promoting," including that it has to reclaim $100,000 to $103,000 to regain its upward pattern. "I believe it’ll in time," he added. Final July, he argued that Bitcoin might hit $150,000 in 2025, a prediction that failed to come back to cross because the cryptocurrency peaked at $126,080 in October.
QCP Capital famous in its newest report that Bitcoin "is buying and selling like a high-beta danger asset, extremely delicate to charges, geopolitics, and cross-market volatility," including that "fairly than behaving as a hedge," crypto is more likely to keep “reactive fairly than directional" till clearer coverage alerts emerge.
The gold value is telling us we’re dropping reserve forex standing at an accelerating charge. The lengthy bond promoting off shouldn’t be signal both. $BTC is disappointing as it’s nonetheless being met with promoting. I’ll reiterate it has to take out 100-103k to regain its upward…
— Mike Novogratz (@novogratz) January 20, 2026
In opposition to this backdrop, company Bitcoin consumers proceed accumulating as Michael Saylor’s Technique notched one in every of its largest purchases in practically a yr on Tuesday, shopping for 22,300 Bitcoin for $2.1 billion regardless of the asset's value wavering.
Armao stated Galaxy's fund can revenue from discovering "successful and dropping firms," noting "you’ll be able to play disrupters, successful and dropping themes throughout monetary providers."
