Bilateral Transfer of $1.5 Billion in Bitcoin from Galaxy Digital to Cryptocurrency Exchanges Causes Price Dip
In a recent development, the Bitcoin price has taken a hit, trading at $115,564 as of this report. This decline was also reported by U.Today.
The drop can be primarily attributed to a large-scale sell-off from a dormant "fossil" wallet that had held these coins for 14 years. Financial services firm Galaxy Digital deposited 10,000 BTC (roughly $1.18 billion) from this wallet onto exchanges, triggering a significant market sell-off.
The rapid liquidation on exchanges indicated genuine selling pressure rather than just asset reshuffling, as also suggested by the substantial withdrawal of USDT (Tether) by Galaxy Digital immediately afterward, signaling a coordinated sell-off rather than repositioning.
This event coincides with a broader pattern of profit-taking by long-term holders after Bitcoin’s recent price rally. Large whale-to-exchange inflows, such as this 10k BTC deposit, typically precede sell-offs due to profit-taking, especially after Bitcoin had surged to record highs around $122,000–$123,000 in mid-July.
At 4:26 a.m. UTC, the price of Bitcoin plunged to an intraday low of $115,125. Following the liquidation, AguilaTrades continues to hold a BTC position with a floating loss of $4 million.
Meanwhile, another 2,850 BTC (roughly $330 million) was deposited by Galaxy Digital to exchanges. However, no new information regarding the involvement of Galaxy Digital in Bitcoin's price drop was provided.
It's worth noting that a Satoshi-era whale recently moved their remaining $4.77 billion to Galaxy Digital, but no new information regarding the current price of Bitcoin in relation to the $4.77 billion held by the Satoshi-era whale was provided. AguilaTrades, a whale, was partially liquidated on his massive 20x long position, losing $2.1 million.
Despite these events, Bitcoin is currently struggling to recover, with over $706.66 million being liquidated over the past 24 hours, with long positions accounting for $551.67 million of that amount. The 10,000 BTC deposited by Galaxy Digital specifically come from that O.G. whale.
In summary, the sharp Bitcoin price drop is mainly attributed to the activation and rapid sale of over 10,000 BTC from a 14-year dormant wallet via Galaxy Digital exchanges, profit-taking by long-term holders leading to increased BTC supply on exchanges, and market consolidation after a strong rally to all-time highs. These factors combined to increase selling pressure and push prices down after recent gains.
- The sell-off of 10,000 BTC from a 14-year dormant whale's wallet, facilitated by Galaxy Digital, has significantly impacted the Bitcoin price, causing it to trade at $115,564.
- The financial services firm Galaxy Digital, known for its involvement in the Bitcoin market, deposited another 2,850 BTC (roughly $330 million) to exchanges, though the exact reasons aren't clear.
- AguilaTrades, another whale in the Bitcoin market, suffered a loss of $2.1 million from a liquidation on his 20x long position.
- The current scenario in Bitcoin finance shows a struggle for recovery, with over $706.66 million liquidated in the past 24 hours, largely due to increased Bitcoin supply on exchanges caused by profit-taking and the rapid liquidation of large holdings.
