Bitcoin News Today: Bitcoin Drops 5.7% as OG Whale Moves $4.8 Billion in BTC

On-chain data from Lookonchain revealed that a long-dormant Bitcoin OG whale has started moving its remaining 40,192 BTC, valued at nearly $4.8 billion, to a new wallet. This movement coincides with a 40x short position opened by trader James Wynn, placing significant selling pressure on Bitcoin. This is the second major transaction in a week, following an earlier dump of 40,000 BTC to Galaxy Digital, totaling over $9.5 billion in BTC that have become active after 14 years.

The Bitcoin OG whale in question holds coins mined between 2010 and 2011, many of which have remained untouched for over a decade. On July 16, Lookonchain confirmed that the whale moved 40,192 BTC to a new address. This movement followed an earlier transaction of 40,000 BTC to Galaxy Digital, raising questions about the whale's intentions and the potential impact on the market.

Within hours of the whale’s transaction, Bitcoin’s price dropped from its $123,000 all-time high to $116,000, a 5.7% decline. Although Bitcoin had recovered to $118,450 at the time of this publication, trading volume was down 18% over the last 24 hours. This price drop coincides with institutional traders reversing their positions. James Wynn, a high-leverage trader, closed his 40x BTC long for a $368,120 profit and went short with the same 40x leverage. His stop loss is set at $120,142, just above the current price, indicating his expectation of further downside.

This is not the first time a Bitcoin OG whale has caused market volatility. In 2020, a single transaction of 50 BTC from a Satoshi-era wallet caused a 12% drop in a matter of hours, despite being a small amount by today’s standards. What sets 2025 apart is the scale: over 80,000 BTC have been activated and possibly sent to exchanges. According to CryptoQuant, these BTC were broken into smaller tranches, split across multiple wallets, and funneled into liquidity centers. Whales have historically sold during periods of high retail activity, taking profits after long accumulation phases. With Bitcoin near its cycle top and ETFs bringing in new inflows, whales may see this as the exit window.

Despite the volatility, some analysts suggest this could be a healthy correction. As long as BTC holds above $117,000, it remains in its uptrend. However, if it breaks below that zone, it could trigger cascading liquidations, especially with Wynn’s short setup. Santiment’s latest report showed elevated “whale to exchange” ratios over the last three days, an early sign of sell pressure. Adding to that, declining retail interest and volume.

The narrative that BTC shakeouts just redistribute supply is one that long-term holders often cling to. However, even strong hands can fold if regulatory or security red flags appear. Based on the latest research, the Bitcoin OG whale activity is creating high risk across the market. Over 80,000 BTC moved in under a week, and James Wynn’s 40x short position has amplified the bearish pressure as Bitcoin hit new highs. Technicals still look good for the bigger picture, but the market structure is fragile, and sentiment depends on whether this selloff continues or stalls.