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Bitcoin’s recent surge experienced a sudden pause. The leading cryptocurrency, after reaching a high above $119,000 on Thursday, declined to a low of $115,800 during European trading hours, marking a two-week low. This drop of 2.7% coincided with a clear signal on the blockchain: Galaxy Digital transferred over 10,000 BTC – valued at approximately $1.18 billion – to prominent crypto exchanges within an eight-hour period, according to data from blockchain analysis firm Lookonchain.
Galaxy Digital’s Activity and Bitcoin’s Price Correction
“Bitcoin is facing selling pressure! Galaxy Digital has moved an additional 2,850 BTC, worth $330.44 million, to exchanges,” Lookonchain alerted its followers on X early in the European trading session. They highlighted that the funds originated from a long-dormant Bitcoin whale dating back to the Satoshi era, which became active again earlier this month. Prior to this, Lookonchain had warned, “Keep an eye on Galaxy Digital, they’ve sent over 10,000 BTC ($1.18B) to various exchanges in the last 8 hours!” Screenshots from Arkham Intelligence showed multiple transactions, each worth millions, being directed to Binance, Bybit, and OKX.
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These transfers are a continuation of a story that began on July 4th, when an address inactive since 2011 began dividing a massive 80,009 BTC holding into smaller portions of 10,000 coins. By July 18th, the final 40,191 BTC – valued at $4.8 billion – had arrived at Galaxy, leading many analysts to speculate about a potential sale.
That speculation now appears to be materializing. Blockchain data indicates that Galaxy is consistently sending Bitcoin to various crypto exchanges, seemingly for sale. The market reaction is mirroring expectations: Bitcoin’s spot price dipped below $118,000 during Asian trading hours, and then sharply declined to $116,000 as London markets opened, resulting in a roughly $55 billion decrease in Bitcoin’s overall market capitalization within just four hours.
Galaxy Digital, led by billionaire Michael Novogratz, has not yet issued any official statement on the matter, nor has it filed any Form 8-K that would indicate changes to its balance sheet. Novogratz recently appeared on CNBC, reiterating his belief that Ether could “outperform” Bitcoin in the coming months, but made no mention of any planned near-term sales.
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While the exact reasons remain unclear, market observers are offering various theories. “It looks like Galaxy Digital is selling off a large portion of its 80K BTC holding. This could be due to a request from a client, related to Saylor, or potentially a shift towards Ethereum as Novogratz recently suggested. Regardless, it’s not a major concern. They likely have about 27K left to sell, and the market will absorb it,” the crypto-focused account Autism Capital posted on X.
Charles Edwards, founder of Capriole Investments, commented: “While this large whale is depositing 10K BTC into spot markets, we’re seeing 30K in leveraged long positions opening on the dip. This isn’t a prediction, and it doesn’t change the long-term outlook, but it’s not a positive sign for the short-term. Even if the entire 80K BTC is sold, if Treasury demand remains strong, it will be absorbed in a couple of weeks.”
As of the latest update, Bitcoin is trading at $115,476.
Featured image created with DALL.E, chart from TradingView.com