Galaxy Digital stock flags a dangerous pattern as losses jump

Galaxy Digital stock price remains in a technical bear market after plunging by nearly 50% from its highest level in 2025, and a risky chart pattern points to more downside as its losses rise amid the crypto market crash.

Summary

• Galaxy Digital stock has formed a head-and-shoulders pattern on the daily chart.
• Technical analysis suggests that the stock is at risk of a deep dive.
• The company made a $482 million loss in the fourth quarter as crypto prices dived.

Michael Novogratz’s Galaxy dropped to $24 on Tuesday, its lowest level since January 2 and well below last year’s high of $45. Its valuation has dropped from $16 billion to $9.3 billion today.

The company released weak financial results as the crypto market crash affected its business. Its net loss jumped to $482 million, mostly due to depreciation on its holdings. As a result, its annual loss jumped to $240 million due to a drop in asset value and one-off costs associated with going public.

The company said that it ended the quarter with $12 billion in assets under management, with its net inflows rising by over $2 billion. At the same time, the company has continued to expand its AI data center business, with the capacity of its Helios data center doubling to 830 megawatts.

Galaxy’s data center business has benefited from its partnership with CoreWeave, a company backed by NVIDIA, the world’s largest firm.

On the positive side, Michael Novogratz believes that Bitcoin (BTC) and other cryptocurrencies will bounce back this year, which will benefit its business. He said:

Galaxy Digital stock price technical analysis

The daily timeframe chart shows that the GLXY stock price has come under pressure in the past few months as the crypto market crash has accelerated.

A closer look shows that the stock may continue to fall in the coming weeks, as it has formed a head-and-shoulders pattern. Its current price is along the neckline of this pattern.

Galaxy Digital share price has moved below the 50-day and 100-day Exponential Moving Averages and the Supertrend indicator, while the Relative Strength Index has moved below the neutral point.

Therefore, the most likely scenario is that it continues to fall as sellers target the key support level at $17.7. A drop below that level will signal further downside to $15.