Bitcoin News Today: Bitcoin Plummets 3% to Two-Week Low Amid Galaxy Digital’s $1.5B BTC Selloff

Bitcoin’s price fell to a two-week low as Galaxy Digital, led by Mike Novogratz, executed a $1.5 billion BTC sell-off, intensifying market volatility and triggering widespread liquidations. According to blockchain analytics firm Lookonchain, the firm initially transferred 10,000 BTC ($1.18 billion) to exchanges before withdrawing 370 million USDT from platforms like OKX, Binance, and Bybit [2]. A subsequent 2,850 BTC ($330 million) transfer raised the total disposal value to $1.5 billion. The moves pushed Bitcoin below $115,000, its lowest level since July 11, 2025, marking a 3% drop over eight hours [1].

The selloff exacerbated leveraged trading risks, with CoinGlass reporting $515 million in liquidated positions in a single day. Over 140,000 traders faced margin calls, including a $17 million loss on OKX—the largest single incident. Bitcoin had traded narrowly between $117,000 and $120,000 for a week, failing to break its prior high of $123,000 despite repeated attempts [1].

Galaxy’s strategy appears to involve converting BTC into stablecoins via leveraged withdrawals, a tactic that amplified market pressure during a fragile period. The firm’s institutional scale—ranked among major crypto custodians—granted it significant influence, though its motivations remain unconfirmed [2]. Analysts noted that over-leveraged positions in BTC futures exacerbated the downturn, as cascading liquidations created a self-reinforcing sell-off cycle.

The event underscores systemic risks in leveraged crypto trading. CoinGlass data highlights Bitcoin’s concentration in liquidation losses, reflecting the asset class’s susceptibility to institutional actions. While Bitcoin’s intrinsic attributes—such as its fixed supply and adoption trends—remain unchanged, short-term sentiment shifted sharply as institutional positioning and retail leverage collided [1].

Regulators and market participants may scrutinize large-scale asset movements like Galaxy’s, particularly as crypto assets gain prominence. The episode illustrates the interplay between institutional strategies and retail trading dynamics in a highly leveraged market. For now, the focus remains on whether Bitcoin can stabilize above $115,000 or face further downward pressure from residual sell pressure.

Source: [1] [Bitcoin Price Dives to 2-Week Low as Galaxy Digital Offloads $1.5B in BTC] (https://cryptopotato.com/bitcoin-price-dives-to-2-week-low-as-galaxy-digital-offloads-1-5b-in-btc/) [2] [Lookonchain Tweet] (https://twitter.com/lookonchain/status/1948644122534850970)