Bitcoin News Today: Bitcoin Plummets 5.8% as Galaxy Deposits $1.51B BTC into Exchanges

Bitcoin experienced a significant intraday selloff as Galaxy Digital, a cryptocurrency services firm, deposited 10,000 BTC (approximately $1.18 billion) into exchanges on Friday. The move, tracked by blockchain analytics firm Lookonchain, occurred hours before the asset hit a low of $115,125—the lowest level since July 10. At 4:26 UTC, Bitcoin was trading at $115,564, struggling to regain momentum as further pressure emerged. Galaxy followed up with an additional 2,850 BTC ($330 million) deposit within 20 minutes, intensifying market anxiety [1].

The transactions originated from a “Satoshi-era whale,” whose $4.77 billion BTC transfer to Galaxy Digital earlier in the week had already signaled potential liquidity needs. Analysts suggested that institutional movements of this scale often correlate with increased selling activity, particularly during periods of capital reallocation or regulatory adjustments. Galaxy’s actions, while not explicitly framed as a strategic exit, have been interpreted by traders as a bearish signal amid broader uncertainty in the crypto market [2].

The sell-off cascaded into broader market dynamics. CoinGlass data revealed $706.66 million in liquidations over the past 24 hours, with long positions accounting for $551.67 million of the losses. A high-profile “AguilaTrades” whale, known for maintaining a 20x long position, suffered a $2.1 million liquidation and now holds a BTC position with a $4 million floating loss. The whale’s overall portfolio has shrunk to $37 million, underscoring the fragility of leveraged positions during sharp price swings [3].

Galaxy’s deposit also highlighted the sector’s sensitivity to institutional decisions. While the firm attributed the transfers to operational adjustments, the timing—amid a broader altcoin rally and inflows into Bitcoin spot ETFs—sparked fears of a correction. Alternative cryptocurrencies like XRP and PumpFun saw steeper declines in the same period, amplifying concerns about systemic liquidity strains [4].

Regulatory factors further complicated the outlook. Galaxy, a South Korean-based exchange, has faced scrutiny following a 2025 cyberattack that halted services for weeks. Its recent alignment with evolving legal frameworks in key markets has been cited as a strategic pivot, though the firm’s history of security vulnerabilities remains a point of contention [5].

Despite the near-term turbulence, long-term bullish fundamentals persist. Bitcoin had earlier surged to $122,658, driven by demand for spot ETFs and institutional adoption. Innovations like Square’s expansion of Bitcoin payments via the Lightning Network—targeting 4 million U.S. merchants by 2026—reflect growing integration into mainstream finance. However, the Galaxy event underscores the dual-edged nature of institutional participation: while large deposits can enhance liquidity, they also risk destabilizing markets when perceived as bearish signals [6].

Investors are now monitoring Bitcoin’s ability to reclaim key resistance levels between $115,000 and $120,000. A sustained breakdown could trigger further liquidations, while a rebound might signal resilience in the face of institutional pressures. The episode serves as a stark reminder of the crypto market’s inherent volatility and the outsized influence of major players on price dynamics.

Sources:

[1] [Bitcoin Price Drops Below $115,000 as Galaxy Digital Deposits $1.5B BTC](https://m.economictimes.com/crypto-news-today-live-24-jul-2025/liveblog/12286556.cms)

[2] [Galaxy’s BTC Deposit Sparks Market Volatility](https://www.blockscholes.com/research)

[3] [Altcoins Suffer Intraday Selloff Amid Bitcoin’s Decline](https://bloomingbit.io/en/feed/news/93517)

[4] [Galaxy’s Regulatory Adjustments and Security History](https://cryptoadventure.com/galaxy-positioned-to-capture-favorable-regulatory-upside-jefferies-says-as-it-initiates-with-buy/)

[5] [Galaxy’s Regulatory Adjustments and Security History](https://cryptoadventure.com/galaxy-positioned-to-capture-favorable-regulatory-upside-jefferies-says-as-it-initiates-with-buy/)

[6] [Bitcoin’s Bullish Fundamentals vs. Short-Term Volatility](https://coincentral.com/miningtoken-reinvents-btc-income-maximize-passive-profits-during-bitcoin-bull-runs-with-ai-powered-cloud-mining/)