Bitcoin News Today: Bitcoin falls 3.01% as whale liquidates $3.5B in 24-hour selloff

A significant Bitcoin selloff orchestrated by a major whale has intensified market volatility, with 30,109 BTC—valued at approximately $3.5 billion—transferred to exchanges and wallets within 24 hours. The rapid liquidation, tracked via blockchain analytics firm Arkham, has pushed Bitcoin below $115,220, marking a 3.01% decline in the last 24 hours. The whale, holding 80,019 BTC (~$9.6 billion), executed a systematic offload through Galaxy Digital, starting with 16,843 BTC ($2 billion) on July 15 alone. Galaxy subsequently deposited 2,000 BTC ($236 million) to Binance and Bybit, signaling immediate market exposure [1].

The whale’s strategy continued with an additional 40,009 BTC ($4.68 billion) sent to Galaxy on July 15, followed by 40,192 BTC ($4.77 billion) moved to a new wallet address before consolidation on July 18. Analysts note this pattern aligns with a “major distribution event,” as described by crypto analyst Crypto Patel, reflecting concentrated selling pressure from early adopters [1]. The timing overlaps with heightened activity from dormant wallets, including a 14.5-year-old address holding $468 million in Bitcoin, suggesting a broader wave of capital reallocation.

Market dynamics have shifted as Bitcoin’s dominance index rose to 61.52%, drawing capital away from altcoins amid widespread liquidations and reduced retail participation. This migration highlights Bitcoin’s role as a perceived safe haven but underscores the fragility of altcoin markets during volatility [3]. The scale of the selloff—equivalent to nearly 0.2% of Bitcoin’s total supply—has amplified concerns about liquidity imbalances, with experts warning that such concentrated transactions can distort price signals and destabilize markets [2].

While institutional resilience was observed in June when Galaxy Digital offloaded $1 billion in Bitcoin without triggering a broad selloff, the current event has compounded bearish pressures. Technical analysts have identified a “rising wedge” pattern in Bitcoin’s price chart, a bearish continuation pattern that could indicate further downward momentum [2]. The sell-off also coincided with broader crypto corrections, including a 140 million XRP offload by Ripple co-founder Chris Larsen, which triggered liquidations on Binance [5].

Macro factors add complexity to the outlook. The Federal Reserve’s upcoming July 30 policy meeting remains a focal point, with market participants scrutinizing commentary on future monetary policy despite expectations of rate stability. Simultaneously, the White House’s Digital Asset Working Group is set to publish its 180-day crypto policy report, potentially outlining frameworks for managing U.S. government-held Bitcoin and regulating digital assets [1].

Analysts debate the long-term implications. While some caution that large-scale whale activity could signal the onset of a bear market, others point to growing institutional adoption—evidenced by rising ETF interest—as a stabilizing force. However, this dual nature introduces risks: if institutional demand proves insufficient to counter whale-driven selloffs, prolonged instability could follow [6].

The event raises critical questions about market structure and transparency. Whale transactions, often accounting for a disproportionate share of daily trading volume, can trigger cascading effects. The $3.5 billion liquidation in 24 hours exemplifies the vulnerability of crypto markets to sudden, large-scale movements, underscoring the need for regulatory frameworks to mitigate such risks.

As investors await further developments, the outcome may determine whether this selloff is a temporary correction or a precursor to systemic challenges. The interplay of whale activity, macroeconomic factors, and regulatory developments will shape Bitcoin’s trajectory in the coming months.

Sources:

[1] [Bitcoin Whale Selloff Triggers Market Meltdown] [https://finbold.com/bitcoin-whales-selloff-triggers-market-meltdown-is-this-the-beginning-of-the-end/]

[2] [Bitcoin Faces Renewed Bearish Pressure] [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-faces-renewed-bearish-pressure-analyst-warns-100k-collapse-rising-wedge-pattern-2507/]

[3] [Bitcoin Dominance Hits 61.52%] [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-dominance-hits-61-52-altcoins-plunge-market-correction-2507/]

[5] [XRP Longs Crushed on Binance] [https://cryptopotato.com/xrp-longs-crushed-on-binance-as-analyst-flags-ripple-co-founders-140m-sell-off/]

[6] [Institutional Investments and Bitcoin Bear Markets] [https://beincrypto.com/institutional-investments-bitcoin-bear-market/]