Bitcoin News Today: Bitcoin plummets 3% after Galaxy Digital executes $9B BTC offload

Bitcoin’s price plummeted over 3% following a massive $9 billion Bitcoin sale orchestrated by Galaxy Digital on behalf of a Satoshi-era investor, marking one of the largest single-transaction crypto sales in history. The firm executed the offloading of 80,000 BTC in a multi-week effort to minimize market disruption, though the sheer scale of the trade triggered immediate volatility. The sale, which included deposits of over 30,000 BTC into exchanges and the withdrawal of $1.15 billion in USDT, pushed Bitcoin below $115,000, a two-week low, and sent ripples through the broader cryptocurrency market [1][2].

Galaxy Digital, a prominent crypto intermediary, disclosed the transaction as part of an estate strategy for its client. The phased nature of the sale—spanning several weeks—was designed to reduce liquidity shocks, but the cumulative effect of multiple transactions, including a 12-hour deposit of 2,850 BTC ($330.44 million), intensified downward pressure on the asset [3]. According to market analytics, the firm’s movements accounted for a significant portion of the price decline, with liquidations exceeding $646 million, including $152 million in long BTC positions [4]. While institutional buyers and sustained retail demand helped prevent a deeper selloff, the event underscored the fragility of Bitcoin’s current price structure amid large-scale institutional selling.

The market reaction mirrored historical precedents, such as whale-driven volatility in 2018 and 2021, where large offloads created temporary panic until supply imbalances were absorbed. Analysts noted that such events often highlight the dual role of institutional players as both stabilizers and disruptors. Galaxy Digital’s execution of the sale, while meticulous in timing, could not entirely shield the market from oversupply concerns, particularly as the transaction’s magnitude reinforced investor skepticism about Bitcoin’s resilience in the face of concentrated selling [5].

Ethereum and major altcoins were also affected, reflecting the interconnected nature of crypto markets. However, divergent trends emerged in the aftermath. While Bitcoin’s dip raised alarm, Ethereum’s breakout above $3,500 and strong altcoin performance suggested broader market optimism. Analysts attributed this to underlying bullish fundamentals, including Ethereum’s post-merge upgrades and sustained staking demand, though caution remained about potential further declines if Galaxy Digital continued its pace [3]. A breakdown below $114,000 could trigger cascading liquidations, according to market watchers, though the completion of the $9 billion sale signaled the resolution of the immediate liquidity event [6].

The transaction also highlighted structural challenges in the crypto ecosystem. Large holders, or “whales,” remain pivotal in shaping price dynamics, with their actions often amplifying market sentiment. Galaxy Digital’s role as a middleman in this high-profile sale demonstrated the delicate balance between facilitating liquidity and avoiding panic-driven volatility. While the 3% drop raised questions about market resilience, the absence of a larger selloff indicated that institutional buyers and stablecoin collateralization might still provide a floor for Bitcoin’s price.

Sources:

[1] [Galaxy Digital appears to offload bitcoin worth billions from ...] (https://www.theblock.co/post/364271/whale-sells-billions-bitcoin-galaxy)

[2] [Galaxy Digital sold over 80000 bitcoins for a Satoshi-era ...] (https://www.mitrade.com/insights/news/live-news/article-3-989138-20250726)

[3] [Bitcoin Sell-Off: Galaxy Digital Moves ...] (https://www.ainvest.com/news/bitcoin-sell-galaxy-digital-moves-2-850-btc-exchanges-market-volatility-2507/)

[4] [Bitcoin Drops, Ethereum Gains: Crypto Market Liquidations ...] (https://stocktwits.com/news-articles/markets/cryptocurrency/bitcoin-drops-ethereum-gains-crypto-market-liquidations-top-500-million-following-galaxy-digital-sell-off/chobb44R5vD)

[5] [Galaxy Digital Offloads Troves of Bitcoin, Market Stays ...] (https://www.ccn.com/news/crypto/galaxy-digital-dumps-troves-of-bitcoin-crypto-market-unfazed/)

[6] [Galaxy Digital Edging Up In US After Hours As Executes ...] (https://news.futunn.com/en/post/59658383/galaxy-digital-edging-up-in-us-after-hours-as-executes)