Bitcoin News Today: Bitcoin Drops 3% as Dormant Whale Sells $3.5B BTC via Galaxy Digital

Bitcoin faces renewed volatility as a massive sell-off by a long-dormant whale threatens to destabilize the market. Blockchain tracking platforms revealed that Galaxy Digital, acting as an intermediary, transferred nearly 30,000 BTC—valued at over $3.5 billion—onto exchanges such as Binance and OKX this week. The moves, part of a larger 80,201 BTC trove linked to a 2011-era wallet, triggered immediate concerns about a broader market correction. The largest transaction occurred on Friday with a 22,610 BTC transfer, followed by smaller, staged deposits. These actions coincided with Bitcoin’s decline below $115,000, a 3% drop for the day [1]. Analysts warn that the scale and timing of these transfers could create a ripple effect, unsettling large holders and prompting panic-driven exits from leveraged traders.

Galaxy Digital has now facilitated the transfer of over 61,000 BTC to exchanges, with earlier movements in July timed to follow Bitcoin’s record high of $122,838. The strategic timing suggests a deliberate effort to capitalize on market peaks. Concurrently, over $1.15 billion in stablecoins has been withdrawn from exchanges, signaling potential stabilization in selling pressure. However, experts caution that the damage may already be embedded in market sentiment. Heavy BTC inflows into centralized platforms often trigger automated selling or fear-based reactions among both retail and institutional investors. If additional large holders follow suit, critical support levels could be tested rapidly [1].

Broader macroeconomic factors amplify the risks of panic selling. A July 2025 report highlighted the influence of Bitcoin whale activity on market confidence, noting that institutional selling patterns can accelerate downward momentum [5]. External pressures, including AI-related job displacement and potential tariff hikes, further cloud the outlook. These uncertainties could either drive investors to Bitcoin as a hedge or trigger mass sell-offs during dips [4][7]. Historical precedents, such as a 2024 German event where the sale of 50,000 BTC sparked widespread panic, underscore the fragility of crypto markets amid large-scale liquidations [6].

While some analysts urge caution against overreacting to short-term volatility, they emphasize the importance of adhering to long-term fundamentals. A Medium article stresses that emotional decisions during crashes often lead to suboptimal outcomes, recommending strategies like dollar-cost averaging or holding through market cycles [2]. However, the collapse of several BTC treasury firms has highlighted the presence of speculative bubbles, reinforcing the need for prudence.

Investors are advised to monitor on-chain metrics such as exchange inflows and hash rate trends, which can serve as early indicators of potential sell-offs. Simultaneously, macroeconomic signals—like inflation data and trade policy developments—will remain pivotal in shaping Bitcoin’s trajectory. The interconnectedness of global events with crypto markets complicates predictions, but vigilance in tracking these variables is essential for navigating the current uncertainty [1].

Source: [1] [Panic Selling Could Crash Bitcoin - What Investors Need to Know Now](https://coinmarketcap.com/community/articles/688697fdbd87cb2c7f22bf79/)

[2] [Why My Roth Money Is 100% Bitcoin & Why You May Want ...](https://medium.com/financial-strategy/why-my-roth-money-is-100-bitcoin-why-you-may-want-to-follow-suit-9faf5fbbec7d)

[3] [Now Could Be the Best Time to Buy These 3 Altcoins](https://www.msn.com/en-us/money/markets/crypto-market-is-down-now-could-be-the-best-time-to-buy-these-3-altcoins/ar-AA1JlP83)

[4] [Google's AI Shockwave: Could Bitcoin Hit $150K or Crash t...](https://www.interactivecrypto.com/googles-ai-shockwave-could-bitcoin-hit-150k-or-crash-t)

[5] [Bitcoin News Today: Bitcoin Whale Selling in July 2025 ...](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-whale-selling-july-2025-sparks-debate-market-confidence-institutional-influence-2507/)

[6] [How a Chinese Ponzi Scheme Turned the UK Into a $7B ...](https://www.ccn.com/education/crypto/uk-bitcoin-sale-crypto-market-shock/)

[7] [Bitcoin may drop if markets react to upcoming tariff or ...](https://cryptorank.io/news/feed/d36e6-bitcoin-pullback-stock-rally-overstretched)