Galaxy Digital Liquidates $500M in Bitcoin Amid Market Shock

Galaxy Digital sold $500M in Bitcoin on exchanges in July 2025 after receiving Satoshi-era transfers, leading to market disruptions.

The large Bitcoin sale by Galaxy Digital highlights the sensitivity of markets to significant liquidations, affecting investor sentiment and market stability.

40,000 BTC Moved From Dormant Whale Account

Galaxy Digital, led by Mike Novogratz, received large Bitcoin inflows from a Satoshi-era whale in July 2025. This whale moved around 40,000 BTC that had not been active for 14 years. The event was notable for the magnitude of the Satoshi-era Bitcoin whale movement, which previously had been dormant.

The whale’s actions led to Galaxy Digital liquidating over $500M worth of Bitcoin. This was achieved within a 24-hour period, marking a major movement in cryptocurrency markets.

Bitcoin Price Dips Below $114,600 Amid Sell-off

Bitcoin’s price dropped below $114,600, and its Relative Strength Index hit a low of 6/100, signaling an oversold condition. A crypto analyst observed, “I have never seen $btc this oversold. Never. This is beyond oversold.”

The sell-off affected major altcoins like ETH, XRP, and SOL, causing considerable declines. Traders noted $681 million in liquidations, reflecting significant market turmoil.

Historical Impact of Large Bitcoin Sales

Similar events, where large BTC transfers by whales led to market disturbances, have occurred previously, often resulting in sharp price declines followed by recovery phases.

Based on historic patterns, such liquidations may lead to enhanced market volatility. The potential for gradual recovery exists if the market can absorb the sell-off effects effectively.