"Satoshi-Era Whale’s $1B Bitcoin Exodus Cracks $117K Support, Ignites $400M Liquidations"

A significant Bitcoin transfer of 17,000 BTC, valued at approximately $1 billion, has triggered a sharp correction in Bitcoin’s price, sending the cryptocurrency below $117,000 and sparking widespread market uncertainty. The transaction, originating from a dormant “Satoshi-era” wallet and directed to Galaxy Digital, marked one of the largest single transfers in recent months. On-chain data from Lookonchain revealed that the wallet, which holds over 80,000 BTC, further distributed 236 million USD worth of Bitcoin to exchanges such as Binance and Bybit, raising concerns of a broader sell-off .

The movement coincided with a 6% intraday drop in Bitcoin’s price, which fell to a low of $116,218. According to CoinGlass, the event triggered a cascade of liquidations exceeding $400 million in long positions within four hours, exacerbating the downward momentum. Ethereum (ETH), XRP, and Solana (SOL) also declined by 1.4% to nearly 2%, respectively, as the crypto market cap contracted by over 3.2%—the largest single-day drop in three weeks . Analysts noted that the whale’s activity amplified existing profit-taking pressures, with on-chain indicators such as net exchange inflows and RSI momentum already signaling weakening bullish momentum prior to the transfer .

The timing of the transfer has drawn particular scrutiny. The wallet in question had been inactive for years before resurfacing in late 2024, coinciding with Bitcoin’s rally to $123,000. Market observers highlighted the wallet’s large holdings and the rapid distribution of its assets as potential catalysts for a local top. “This kind of whale activity rarely happens without consequences,” one analyst stated, noting that continued selling from the wallet could retest support levels at $112,000 or $108,000 . The move also tested a critical “order block” level—a zone where previous buyers had historically stepped in to support prices—without triggering a rebound.

Broader macroeconomic factors have further compounded the market’s fragility. Regulatory uncertainty in the U.S., potential shifts in Federal Reserve rate policy, and the upcoming CPI data release have heightened investor caution. Meanwhile, Bitcoin’s dominance in the crypto market has dipped to 55.7%, as altcoins such as PEPE and DOGE surged on speculative momentum . The recent liquidation event underscores the vulnerability of markets to large-scale distribution, particularly when liquidity is concentrated among a few key players.

Technical indicators suggest that the correction may not yet be complete. The Relative Strength Index (RSI) for Bitcoin has shown bearish divergence, with price forming higher highs while the RSI peaks decline—a classic warning of weakening momentum . Additionally, the 30-day net inflow of Bitcoin into exchange wallets has cooled to 500 BTC per day, a stark contrast to the 10,000 BTC daily inflows seen in July and August. Analysts caution that without sustained institutional absorption of supply, Bitcoin could remain range-bound between $110,870 and $116,705 for the foreseeable future .

The market’s reaction to the whale transfer highlights the ongoing tension between long-term bullish fundamentals and short-term volatility. While Bitcoin has gained 93.7% year-to-date, its inability to break above $125,000 has raised questions about the sustainability of its rally. The event also underscores the growing influence of large holders in shaping market dynamics, a trend that could persist as more early-era wallets become active. For now, the focus remains on whether the remaining 63,000 BTC in the wallet will enter the market—a development that could determine the trajectory of Bitcoin’s next major price movement.