Bitcoin News Today: Galaxy Digital's $1.51B Bitcoin Transfer Sends BTC to Two-Week Low as Market Fears Sell-Off

A massive Bitcoin transfer by Galaxy Digital triggered significant market volatility, sending prices to a two-week low and intensifying selling pressure. The financial services firm moved 10,000 BTC (approximately $1.18 billion) and an additional 2,850 BTC ($330 million) from its commercial portfolio to cryptocurrency exchanges on July 21, 2025. This sequence of transactions, completed within hours, accelerated Bitcoin’s decline to $115,080—the lowest level since July 10—and raised concerns about potential further sell-offs as large transfers to exchanges often signal increased supply pressure [1]. Analysts speculate the move was a profit-taking strategy, though market makers also cited hedging against short-term risks as a possible motive [3].

The selling spree exacerbated vulnerabilities in leveraged trades, with CoinGlass data showing $706.66 million in liquidations over 24 hours, including $551.67 million in long positions. A prominent whale, identified as AguilaTrades, suffered a $4 million loss after partial liquidation of its 20x leveraged long position, compounding panic among traders [1]. High-volume sales from Galaxy Digital weakened buyers’ positions, creating an imbalance that hindered Bitcoin’s recovery [1]. The event coincided with broader market jitters ahead of the U.S. Federal Reserve’s policy meeting and ongoing debates over crypto regulation, amplifying uncertainty [2].

Market participants observed conflicting signals in the aftermath. While some analysts suggested the transfers could represent strategic asset rebalancing rather than direct dumping, others highlighted the role of institutional players in offloading Bitcoin to hedge risks [3]. Retail investors accelerated exits, shifting capital to alternative cryptocurrencies in a bid to mitigate losses, underscoring the interconnected nature of crypto markets [3]. The episode also exposed structural challenges, including regulatory ambiguity and liquidity risks. BlackRock’s silence on its rumored $10.22 billion in Ethereum holdings left investors without clear guidance, further stoking market anxiety [4].

Despite the short-term turbulence, broader trends in crypto adoption continued. U.S. policymakers advanced frameworks for strategic Bitcoin reserves, reflecting growing institutional acceptance of crypto as a long-term asset class [5]. Meanwhile, global crypto payroll integration expanded, with Bitcoin retention seen as a stabilizing factor amid price swings [7]. However, the volatility reinforced calls for caution, as investors grappled with Bitcoin’s dual role as both a speculative asset and a potential store of value.

Sources: [1] [Bitcoin News Today: Galaxy Digital $404M Transfer Sparks Market Speculation](https://www.ainvest.com/news/bitcoin-news-today-galaxy-digital-404m-bitcoin-transfer-sparks-market-speculation-2507/) [2] [Bitcoin Drops Below $116,000 as Fed Meeting, Crypto Policy Loom](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-drops-116-000-fed-meeting-crypto-policy-loom-2507/) [3] [Crypto News Today: Market Makers Offload Bitcoin, Triggering Panic](https://m.economictimes.com/crypto-news-today-live-25-jul-2025/liveblog/122889124.cms) [4] [BlackRock’s Silence and Its Impact on Crypto Investors](https://www.onesafe.io/blog/blackrock-crypto-claims-unverified-impact) [5] [U.S. and States Advance Strategic Bitcoin Reserve Policies](https://natlawreview.com/article/crypto-capitol-states-take-lead-strategic-bitcoin-reserves) [7] [Dynamics of Bitcoin U.S. Holdings and Global Crypto Payroll Trends](https://www.onesafe.io/blog/dynamics-of-bitcoin-us-holdings-and-global-crypto-payroll-trends).